China’s metal container industry, a key indicator of hot-rolled coil (HRC) demand, has weakened sharply amid slowing global trade momentum and adjustments in the country’s manufacturing sector. Latest data show a rapid downturn in the sector, increasing pressure on upstream steel markets.

According to the National Bureau of Statistics, China produced 14.504 million cubic meters of metal containers in October 2025, down more than 30% month on month and 52.3% year on year. Output from January to October fell 16.3% from the same period last year, signaling a swift retreat from the strong demand seen in 2024. October production dropped to less than half the level in the same period of 2024, reflecting softening orders and slower production among container manufacturers.

The decline has reduced demand for carbon steel and weathering steel, as social inventory destocking slows. Some mills have lowered operating rates to manage inventory pressure. Weak procurement and continued negative production growth suggest hot-rolled coil demand will remain subdued in the near term.

Looking ahead, market observers are watching whether container output stabilizes, shifts in hot-rolled coil inventories and mill operating rates, and movements in China’s export container freight index.