China's hot-rolled coil production increased

According to the data reported by the China National Bureau of Statistics (NBS), China's hot-rolled coil (HRC) production reached 172.696 million metric tons in the January-October period of this year, showing a year-on-year increase of 13.2%. During the same period, cold-rolled coil (CRC) production in China increased by 4.1% annually to reach 32.275 million metric tons.

In October alone, China's production figures recorded a year-on-year increase of 14.1% and 9.4% for hot-rolled coil and cold-rolled coil, reaching 17.145 million metric tons and 3.59 million metric tons, respectively, with increases of 3.52% each.

In October, hot-rolled coil prices in the Chinese domestic market initially decreased, then recovered. The highest price level in October was observed on October 30-31 at 4,005 RMB/mt (558$/mt), while the lowest level was recorded on October 12 at 3,895 RMB/mt (543$/mt). As of November, hot-rolled coil prices in the Chinese local market continued to rise. This upward trend is attributed to China's issuance of an additional 1 trillion RMB worth of special bonds for the October-December period of 2023 and the ongoing increase in imported iron ore prices.