Price trend

Hot rolled sheet and coil prices fell before rising this week. According to the SunSirs commodity market analysis system, as of September 5, the average domestic hot rolled sheet and coil market price was 3,393 RMB/ton, a weekly decrease of 0.585%. The average domestic cold rolled sheet market price was 3,800 RMB/ton, a weekly decrease of 5.0%.

Factors influencing price fluctuations:

Fundamentals

According to the latest data obtained by SunSirs, the social inventory of hot rolled steel this week was 294.36 tons, up 85,800 tons from the previous week, and the weekly output was 3.1424 million tons, down 105,000 tons from the previous week; the social inventory of cold rolled steel this week was 1.3655 million tons, up 20,700 tons from the previous week, and the weekly output was 862,900 tons, up 2,100 tons from the previous week.

This week, the inventory of steel billets of the same caliber in Tangshan's major warehouses and ports was 1.4215 million tons, a weekly increase of 91,400 tons.

Cost side

This week, the supply of the five major steel varieties was 8.6065 million tons, a weekly decrease of 2.7%; the total inventory was 15.007 million tons, a weekly increase of 2.2%; the weekly apparent consumption was 8.2783 million tons, a weekly decrease of 3.5%, of which the consumption of building materials decreased by 1.8% and the consumption of plates decreased by 4.4%.

Weekly production of hot rolled sheet and coil fluctuated between 3.1489 million and 3.2524 million tons throughout August, reaching a peak of 3.2524 million tons in the final week of August. August's weekly production decreased by 114,000 tons compared to July, with an average of 3.1963 million tons. The average weekly production in July was 3.2248 million tons. From August 22 to August 29, 2025, weekly production decreased by 5,000 tons, a month-on-month decrease of 0.15%. Compared to the same period last year, weekly production increased by 196,900 tons, a year-on-year increase of 6.45%. TT Steel is currently operating normally, unaffected by environmental restrictions. YK Steel's profits are essentially flat. JL Steel is currently experiencing losses and plans to overhaul a blast furnace on the 15th of this month, with an estimated duration of 40 days. LG Steel plans to overhaul a production line from September 5th to 20th, with an estimated production impact of 170,000-180,000 tons. This production primarily meets end-user orders, resulting in relatively low market arrivals. Hot rolled sheet and coil production is expected to decrease slightly this week.

Market outlook

Market conditions are rapidly changing, and manufacturers are adjusting their production plans based on their own circumstances and market demand, taking into account the impact of order intake and profits. Last week, weekly production of mild steel plate, hot rolled sheet and coil, and hot rolled strip decreased to varying degrees, with mild steel plate experiencing the largest decrease of 1.08%, while hot rolled sheet and coil and hot rolled strip both saw decreases of 0.15%. Due to the varying profitability of manufacturers, weekly production of mild steel plate, hot rolled sheet and coil, and hot rolled strip is expected to continue to decrease this week.

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