Steel rebar futures were trading around CNY 3,300 per tonne in February, holding near a one-month high, as expectations of strengthening demand from China continued to support prices.
Steel holds near one-month high
Optimism grew after Chinese local authorities established a CNY 50 billion fund to purchase unsold homes and land from Vanke, marking the most ambitious effort yet to assist property developers and fulfill commitments to supporting the construction sector—one of the world's largest consumers of rebar. This reinforced the view that fiscal stimulus is gaining momentum, following data showing that new government bond issuance doubled in January.
Global protectionism had limited impact on Chinese steel exports
Meanwhile, growing global protectionism has had a limited impact on Chinese steel exports, as the country’s significantly higher production capacity continues to drive overseas shipments. Several nations have imposed or are considering trade barriers—Vietnam introduced tariffs on Chinese hot-rolled coils, the U.S. levied duties on all steel products, and Brazil, South Korea, and India are evaluating potential restrictions. Despite these measures, China exported 9.7 million tons of steel in December, marking a 26% year-over-year surge and capping off a record-setting 2024. Looking ahead, investors are closely watching further policy moves, infrastructure projects, and global trade developments that could influence both domestic and international demand for Chinese steel.
