Steel rebar futures rise on China stimulus and exports

Steel rebar futures rose to CNY 3,320 per tonne, recovering from a three-week low of CNY 3,260 reached on December 9th.

Steel rebar futures rise on China stimulus and exports

This rebound was driven by firm economic support pledges from the Chinese government, which raised hopes for a recovery in the country's property market and manufacturing sector. The Politburo announced a shift to a "moderately loose" monetary policy stance for the upcoming year, moving away from the "prudential" approach of the past decade. In addition, the government pledged to implement more proactive fiscal measures, including supporting equity markets and property prices, to mitigate risks of debt-laden developers, major consumers of steel rebar, facing liquidation.

Steel price rebound limited by global supply, Chinese exports surge

However, the global availability of steel limited the extent of the price rebound. Recent trade data also revealed that Chinese steel exports surged to over 100 million tons in the year through November, the highest level since 2016, as mills increased sales to foreign markets to meet targets.