China Steel Futures Under Pressure as Soft Demand Outlook Persists

Property Sector Drag

The turn of the year has not brought the anticipated relief for the Chinese construction sector. While infrastructure projects offer some support, the volume of residential steel consumption continues to lag, keeping rebar prices pinned near their 52-week lows.

Margin Compression

Chinese mills are facing a squeeze as raw material costs for iron ore hold steady while finished steel prices drift lower. This is likely to lead to further voluntary production cuts in the first quarter of 2026 to prevent a massive inventory build.