Steel rebar futures climbed back above CNY 3,300 per tonne, nearing the one-month high of CNY 3,330 reached on January 17th, as easing concerns about potential US tariffs on China shifted market attention to optimistic data from Chinese construction and manufacturing sectors.
Steel approaches one-month high
Housing prices in China at the end of the year experienced their smallest decline since August, signaling improved conditions in the housing market. This, coupled with a sharp rebound in the NBS Construction PMI to 53.2 in December from November’s record low of 49.7, pointed to stronger construction demand.
Industrial output boosts demand
Beyond construction, demand for ferrous metals received an additional boost from a sharp acceleration in industrial output in December, reflecting broad-based improvements in manufacturing activity. Furthermore, China exported 9.7 million tons of steel in December, a staggering 26% increase compared to the previous year. This surge capped a record-setting year for Chinese steel exports, underscoring the ability of major Chinese mills to maintain significant overseas sales volumes despite rising global protectionist measures and rhetoric.
Eyes on China
The recovery in steel rebar futures and the strength in export performance highlight the resilience of China’s steel industry, which continues to find support from domestic infrastructure projects and sustained foreign demand. These trends, if sustained, could further bolster market sentiment and temper concerns about oversupply in the global steel market.
