Steel rebar futures fell below CNY 3,220 per tonne, nearing the one-month low of CNY 3,210 reached on March 11th, as concerns over weakening demand weighed on the market.
Steel drops further toward one-month low
Fresh data revealed that housing investment in China contracted by nearly 10% in the first two months of the year, while new home prices declined from the previous month, reinforcing fears that the country’s prolonged property crisis has yet to reach a turning point.
The persistent downturn in property demand has intensified concerns that more property developers will face liquidation in 2025, further diminishing a key source of rebar purchases in the world's top steel-consuming nation. The bleak real estate outlook has already dampened domestic steel demand, leading to an oversupply that has pressured prices.
Global trade war hits Chinese steelmakers
At the same time, rising global trade barriers have limited Chinese steelmakers’ ability to export their excess supply. Several countries—including Taiwan, Vietnam, South Korea, Brazil, and the U.S.—have either imposed or are considering tariffs on Chinese steel products, adding to the headwinds facing the sector.
China may cut capacity
In response to the mounting challenges, the Chinese government has signaled potential capacity cuts to address oversupply concerns. However, no specific details regarding the scale or timeline of these reductions have been disclosed, leaving uncertainty in the market. Traders remain cautious, closely monitoring government policies and external trade developments for further direction.
