Steel rebar futures rose to the CNY 3,250 per tonne mark, rebounding from the one-month low of CNY 3,200 on February 14th, as monetary and fiscal support from the Chinese government bolstered expectations that major property developers would continue to sustain rebar demand.
Steel rebounds from one-month low
The gains reflected growing optimism that stimulus efforts would provide much-needed stability to China’s struggling real estate sector, a key driver of steel consumption.
Reports emerged that local authorities had established a CNY 50 billion fund to purchase unsold homes and land from Vanke, one of China’s largest property developers. This move marked the most ambitious government intervention yet to support property giants and signaled a broader commitment to fulfilling pledges aimed at reviving the country’s construction sector. As construction activity accounts for a significant share of steel demand, such measures reinforced confidence that demand for rebar would remain resilient in the coming months.
Fiscal stimulus appeared to be gathering momentum
Adding to the optimism, fiscal stimulus appeared to be gathering momentum. The latest credit aggregates showed that new government bonds issued in January totaled CNY 693 billion—more than double the amount issued in the same period last year. This surge in government borrowing underscored Beijing’s commitment to supporting economic growth through increased infrastructure spending, another major driver of steel demand.
Meanwhile, the recent announcement of steel tariffs from the United States had little impact on the market’s outlook for Chinese steel trade. Analysts noted that previous tariffs imposed during President Trump’s first term had already reshaped global steel supply chains, effectively severing Chinese steel exports to North America. As a result, the latest tariff measures were seen as largely symbolic rather than a fundamental disruptor to China's steel industry, which remains primarily focused on domestic demand and exports to other key markets such as Southeast Asia.
