The Ostwald ripening of carbide particles occurs during the process of subcritical annealing in SCM435 steel, and the degree of ripening influences the microstructure and mechanical properties of the steel. The effects of Ostwald ripening were studied by simulating different soaking time at 680 °C using SCM435 steel. The spheroidized specimens were analysed by conducting microstructure and mechanical tests. After increasing the soaking time from 2 to 6 h at 680 °C during subcritical annealing, the number of carbide particles and the spheroidization ratio increased gradually, and the formability was improved. When the soaking time ranged from 6 to 8 h, the spheroidization ratio was similar; however, the number of carbide particles decreased, and the formability gradually worsened. Therefore, by comprehensively comparing the microstructures and mechanical properties, the optimum soaking time was determined to be 6 h at 680 °C during subcritical annealing to obtain preferable cold heading. In addition, the carbide particles gradually coarsened when the soaking time was extended from 2 to 8 h. A formula was presented to quantitatively characterize the progress of Ostwald ripening of the carbide particles during the subcritical annealing of SCM435 steel, and the relative error was less than 8.02%.