- HRC prices stable, rebar declines w-o-w
- Shagang Steel rolls over long steel prices
The Chinese steel market saw mixed trends in prices this week, as bearishness persisted. Domestic steel product prices, including billet and rebars, dropped w-o-w. However, hot-rolled coils (HRCs) and iron ore were stable compared to last week. Meanwhile, coking coal prices dropped w-o-w.
The China Iron and Steel Association (CISA) announced that the total steel inventory at key Chinese enterprises in mid-June 2025 stood at 16.21 million tonnes (mnt), up by 420,000 tonnes (t) or 2.7% as compared to 15.79 mnt in early-June 2025.
1. Iron ore spot prices hold largely firm w-o-w: Benchmark iron ore fines spot prices stood firm w-o-w at $94/tonne (t) CFR China on 27 June amid fresh bookings. Price support was evident by the fact that values rebounded from $92/t CFR levels, primarily driven by stronger pig iron production news, which led to inventory restocking.
Iron ore inventory at Chinese ports decreased by 1 million tonnes (mnt) w-o-w to 133.6 mnt on 26 June, as per data published by Steel Home.
a) Spot pellet premiums rise w-o-w: Spot pellet premiums for Fe 65% grade pellets held stable w-o-w at $14.10/t CFR China on 26 Jun.
b) Spot lump premiums decrease w-o-w: Spot lump premiums rose marginally by $0.0065/t to $0.1590/dmtu on 26 June.
2. Coking coal prices inch down w-o-w: Australian PHCC prices inched down w-o-w to $174/t FOB due to weak demand. BigMint’s premium hard coking coal (PHCC) index was assessed at $187/t CNF Paradip, India, on 27 June 2025, stable against the previous assessment on 20 June. High port stocks, lower bids, and falling met coke prices were the primary reasons behind the absence of active trades.
3. Chinese billet prices drop by RMB 20/t ($3/t) w-o-w: Steel billet prices in Tangshan, China, dipped by RMB 20/t ($3/t) w-o-w to RMB 2,910/t ($405/t), including 13% VAT, on 27 June. Billet prices showed weakness, primarily driven by prevailing stagnant market conditions and lower demand in the finished steel segment. SHFE rebar futures (October 2025 delivery) were largely stable w-o-w at RMB 2,995/t ($418/t) on 27 June.
4. Domestic HRC prices remain flat w-o-w: China’s HRC offers remained firm w-o-w at RMB 3,070/t ($428/t) following the stability in SHFE futures. SHFE HRC futures held firm w-o-w at RMB 3,119/t ($435/t) on 27 June. The limited movement in futures prices reflected prevailing market uncertainty. However, trading activity remained slow amid weak market sentiments.
Meanwhile, Chinese HRC export offers remained stable w-o-w at $445/t as overseas demand continued to stay subdued.
5. Domestic rebar prices drop w-o-w: China’s rebar offers dropped by RMB 40/t ($6/t) w-o-w to RMB 3,140/t ($438/t) against RMB 3,180/t ($443/t) a week ago. The drop was largely driven by weak domestic demand and ongoing rainfall in certain Chinese regions, which slowed down construction activity and dampened market sentiment.
SHFE rebar futures (October 2025 contract) stood at RMB 2,990/t ($417/t) on 27 June, down by RMB 4/t ($1/t) as compared to RMB 2,994 /t ($418/t) on 20 June.
China’s Shagang Steel rolled over long steel prices for late-June 2025 sales. Prices of rebars, coiled rebars, and wire rods were as follows:
- Rebars (16-25 mm): RMB 3,250/t ($452/t)
- Coiled rebars (8-10 mm): RMB 3,410/t ($474/t)
- Wire rods (6-10 mm): RMB 3,320/t ($462/t)
Outlook
China’s steel market might stay under pressure in the near term due to weak demand, seasonal rains, and potentially slowing exports. Even though HRC prices held steady, trading activity has been sluggish amid geopolitical tensions. With coking coal prices dropping and inventories growing, sentiment remains low.
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