25.02.202605:57:18UTC+00Steel Rebounds as China Production Resumes

Steel rebar futures rose above CNY 3,060 per ton in late February, rebounding from multi-month lows as economic activity in China picked up following the extended Lunar New Year holiday and mills were expected to ramp up production.

Nonetheless, analysts expect China’s steel demand to soften in the first half of the year, which could limit the strength and longevity of the price recovery. The sector is also watching the potential fallout from the US Supreme Court’s recent tariff ruling, amid concerns it could open the door to additional protectionist measures after last year’s strong Chinese steel export performance.

Even so, China is projected to face lower average duties on its metal-intensive exports as a result of the court’s decision, which could support further export growth. On the policy side, the People’s Bank of China left its benchmark lending rates unchanged for a ninth consecutive month, providing only modest policy support for the domestic steel market.