Price trend

Boosted by positive news on Thursday, the futures market took the lead in rising, spot trading improved, and local quotations followed suit to explore price increases. According to the Commodity Market Analysis System of SunSirs, General mild steel plate (material: Q235B; Specification: 20): on July 11th, the price was 3,282 RMB/ton, an increase of 1.23% compared to Monday.

Influence factor

Steel billet market:

Domestic steel billet prices slightly increased last week. As of July 11th, the tax inclusive price of Tangshan general square billets was quoted at 2,950 RMB/ton, an increase of 20 RMB/ton compared to the previous week. In terms of inventory, Tangshan's main warehouse inventory was 732,300 tons, an increase of 51,900 tons from the previous week. In the first half of the week, the trading in the raw material market was flat, and manufacturers mainly chose to ship, with stable quotations as the main focus. After Thursday, driven by positive news, the market strengthened and sentiment was boosted. Trading transactions were still acceptable, and steel billet prices slightly increased. Based on the three week accumulation of raw material inventory and the support of rising raw material costs, it is expected that the domestic steel billet market will experience fluctuations to be stronger next week.

Supply and demand side

According to data from the China Iron and Steel Association, the daily average production of pig iron by key steel enterprises in late June 2025 was 1.953 million tons, an increase of 0.3% compared to the previous month; The daily crude steel production was 2.129 million tons, a decrease of 0.9% compared to the previous ten day period; The daily average production of steel was 2.257 million tons, an increase of 6.4% compared to the previous ten day period. In late June, the steel inventory of key steel enterprises was 15.45 million tons, a decrease of 760,000 tons or 4.7% compared to the previous month.

Most parts of the country are hot and humid, and the southern coastal areas are affected by typhoons, experiencing continuous heavy rainfall. Terminal users purchased according to demand, and transaction performance was light. After Thursday, the futures market surged significantly, speculative demand increased month on month, and trading volume increased.

Market outlook

Overall, the recent policy push for "anti involution" and the transformation and upgrading of traditional industries has been interpreted by the market as the promotion of supply side reforms in coal, steel, and other industries, and the market's confidence in expectations has increased. At the same time, Shanxi steel enterprises received a verbal notice that the province's crude steel production will be reduced by 6 million tons throughout the year. The mid week futures market was the first to rise, and market sentiment was instantly ignited. Steel mills actively pushed up prices, and steel prices in various regions rose to varying degrees. Considering the off-season demand, unchanged supply and demand fundamentals, decent profits for blast furnace steel enterprises, and slow short-term production cuts, it is expected that the domestic mild steel plate market will continue to operate strongly next week.

If you have any inquiries or purchasing needs, please feel free to contact SunSirs with support@sunsirs.com.