Steel rebounds on demand hopes

Steel rebar futures climbed above CNY 3,080 per ton, rebounding from multi-week lows amid optimism that an improving macroeconomic backdrop could support demand.

Markets positioned for an expected US Federal Reserve rate cut and awaited signals from China’s annual Central Economic Work Conference, where policymakers will outline growth targets and policy plans for next year.

Chinese steel mills continued to actively restock raw materials despite Beijing’s crackdown on overcapacity, supported by strong steel demand in international markets.

China’s steel exports rose 2% month-on-month to 9.98 million tons in November, up 7.5% from a year earlier.

Year-to-date exports reached 107.72 million tons, a record high for the period, representing a 6.7% annual increase.

Meanwhile, steel prices have faced pressure recently, with industry data showing that only 35% of Chinese steel mills were profitable at the end of November, down from 45% in late October.