China Steel Daily Report: Hot-Rolled Coil Prices Rise as Production Cuts Support Market

## Today's Key Prices

China steel spot prices in Shanghai edged higher on August 24, driven by continued production cuts and improving downstream demand. Hot-rolled coil led gains at +1.4%, while rebar and medium plate also posted moderate increases.

### Price Table

| Product | Spec | Grade | CNY Price (¥/t) | FOB Estimate ($/t) | Change |
|---|---|---|---|---|---|
| Hot Rolled Coil | 2.75×1500*C | Q235B/SS400 | ¥3,580 | $543.91 | ▲+50 (+1.4%) |
| Rebar | φ10 | HRB400 | ¥3,580 | $543.91 | ▲+30 (+0.8%) |
| Cold Rolled Coil | 1.0mm×1250×2500 | ST12/DC01 | ¥3,930 | $595.92 | ▲+10 (+0.3%) |
| Medium Plate | 8mm×2000*L | Q235B | ¥3,960 | $600.38 | ▲+20 (+0.5%) |

*USD/CNY rate: 6.7291 (Source: DSP SteelPriceDate, 2026-08-24)*

## DSP Composite Index

The DSP Composite Index stood at **961.05** (as of 2026-08-14), up **+0.22%** from the prior day. The index has been consolidating near 960 over the past week, reflecting a market in transition between seasonal demand weakness and supply-side support from production curtailments.

## Market Analysis

China's steel market showed firming signals on August 24, with all four major product categories posting price increases. The key driver remains the ongoing supply-side tightening. According to the China Iron and Steel Association, national crude steel output in July was **76.93 million tons, down 3.6% year-on-year**, with daily production falling 11.0% month-on-month to 248.16万吨 (Source: Mysteel, 2026-08-24). This sustained production reduction has helped absorb excess inventory pressure and provided a fundamental floor for prices.

Demand is showing signs of marginal improvement as well. In the Changsha rebar market, daily trading volume surged nearly 30% to 2,809 tons in August compared to July, with three consecutive days exceeding 3,000 tons (Source: Lange Steel, 2026-08-22). This seasonal demand recovery, though still constrained by historically high inventory levels, is providing incremental price support, particularly for construction-grade products like rebar which rose +0.8% today.

On the cost side, Tangshan Bingnuo Metal announced a locked price for medium plate at ¥3,490/ton (pre-tax base), while Tangshan Donghua raised cold-rolled coil base material prices by ¥20/ton (Source: Lange Steel, 2026-08-24). These钢厂 pricing actions indicate that producers are gradually regaining pricing power amid tighter supply. Meanwhile, the seamless tube market remains stable, with Shandong Yong'an Hao Yu and Shandong Jinbaocheng both reporting flat prices (Source: Lange Steel, 2026-08-24), suggesting no immediate demand-driven pressure in the tubular segment.

The broader macro backdrop includes mixed signals: while the Chinese government is pushing to clear enterprise payment arrears and improve air quality, international trade tensions between the US and Canada are escalating, with the US imposing additional tariffs on Canadian goods and Canada announcing reciprocal measures (Source: Mysteel, 2026-08-24). Although this trade dispute is not directly China-related, it could affect global steel trade flows and indirectly impact Chinese export competitiveness.

## Procurement Advice

• **Immediate Purchase (急单)**: For buyers needing steel within 1–2 weeks, consider locking in orders now, especially for hot-rolled coil and rebar. Production cuts are likely to persist in the near term, and any further demand surge could trigger sharp price rallies. The current upward momentum (HRC +1.4%, rebar +0.8%) suggests waiting may cost more.

• **Stocking / Buffer Inventory (备货)**: For buyers planning ahead, the medium-term outlook is cautiously supportive. With crude steel output down 3.6% YoY and demand showing seasonal recovery, prices have a reasonable floor. However, inventory remains elevated at five-year highs, which limits upside potential. Consider dollar-cost averaging purchases over the next 2–3 weeks rather than committing large volumes at once.

## Market News

• **Tangshan Donghua raises cold-rolled coil base material by ¥20/ton** —钢厂主动提价反映成本支撑与供应偏紧，对冷轧采购有边际利好。（来源：Lange Steel, 2026-08-24）

• **National crude steel output fell 3.6% YoY in July** —供给收缩是近期价格企稳回升的核心驱动力，有利于中长期价格底部支撑。（来源：Mysteel, 2026-08-24）

• **Changsha rebar trading volume surged nearly 30% MoM in August** —需求边际改善验证下游韧性，但高库存仍压制反弹幅度，建议按需采购。（来源：Lange Steel, 2026-08-22）

• **Shandong seamless tube prices hold steady** —管材市场供需平稳，无明显价格上涨动力，适合按需小批量采购。（来源：Lange Steel, 2026-08-24）

• **US imposes additional tariffs on Canadian goods; Canada announces reciprocal measures** —贸易摩擦升级可能间接影响全球钢材贸易流向，对中国出口竞争格局存在不确定性。（来源：Mysteel, 2026-08-24）

• **94 steel enterprises complete energy efficiency benchmark certification** —行业能效标杆建设推进，头部企业成本优势有望扩大，长期有利于行业集中度提升。（来源：Mysteel, 2026-08-24）

## Data Disclaimer

Data source: DSP database (Shanghai spot prices, DSP index, USD/CNY rate). Prices are for reference only.