Wedoany.com Report on Feb 2nd, For the week ending January 30, China's steel market prices showed a slight upward trend, despite continued weak downstream demand. Meanwhile, the price movements of key raw materials diverged, with iron ore prices falling slightly, billet prices remaining stable, and metallurgical coal prices edging up. 
According to data released by the China Iron and Steel Association, the total steel inventory of key steel enterprises reached 16.13 million tonnes in mid-January 2026, an increase of 7.3% compared to early January. Compared to mid-December 2025, inventory increased by 120,000 tonnes, up 0.8% month-on-month. Year-on-year, inventory grew by 3.2 million tonnes, representing a 24.7% increase.
In the iron ore market, the benchmark price for iron ore fines fell by $2/dmt week-on-week to $103/dmt CFR China on January 30. The price decline attracted purchasing interest from steel mills, with some companies taking advantage of the lower prices to replenish inventories. As more blast furnaces resume production, steel mills are expected to conduct final-stage inventory replenishment before the Spring Festival. Spot pellet premiums and lump ore premiums remained stable.
Metallurgical coke prices showed a strengthening trend. The domestic coking coal market was largely stable on January 29 but with an upward bias. Stable mine output, low plant inventories, and improved steel mill margins supported prices. Market expectations are widespread that the first round of metallurgical coke price increases will be implemented soon. Australian PHCC prices edged up by $1/tonne to $251/tonne FOB, and the Indian Paradip PHCC index also rose by $1/tonne to $265/tonne.
Billet prices remained stable against a backdrop of weak winter demand. For the week ending December 30, China's billet price held steady at 2,940 yuan/tonne, with prices fluctuating within a narrow range. Shanghai Futures Exchange rebar futures rose by 20 yuan/tonne to 3,112 yuan/tonne, supported by rising raw material costs and expectations for spring demand.
Hot-rolled coil prices increased slightly by 10 yuan/tonne week-on-week to 3,080 yuan/tonne. SHFE HRC futures remained largely stable, and China's HRC export offer was maintained at $470/tonne FOB. Rebar prices rose by 10 yuan/tonne week-on-week to 3,170 yuan/tonne, following the gains in the futures market.
Ahead of the Spring Festival holiday, China's steel market is expected to remain under pressure, with trading activity likely to stay slow. Weak demand continues to weigh on the market, and any price recovery will depend on an improvement in downstream procurement. As demand trends become clearer, the market direction will also become more apparent.
