Steel pressured by regulatory concerns

Steel rebar futures remained below CNY3,060 per ton, hovering near one-month lows after China’s Ministry of Commerce said it would place certain steel products under an export licensing regime starting January 1.

The announcement followed a surge in Chinese steel exports that has prompted protectionist responses in overseas markets. China’s steel industry has increasingly depended on exports amid weak domestic demand tied to a prolonged property sector downturn.

Industry data showed that only 35% of Chinese steel mills were profitable at the end of November, down from 45% in late October, underscoring mounting margin pressure.

Sentiment was further weighed down by disappointing November economic data in China, with retail sales growth and industrial production falling short of expectations, fixed asset investment declining more than anticipated, and new home prices contracting for the 29th consecutive month.