China Steel Prices Consolidate Amid Winter Production Cuts and Fiscal Hopes

Production Discipline vs Real Estate Woes

Chinese mills have implemented mandatory winter output cuts to prevent an inventory glut. This production discipline has successfully defended the 3,000-Yuan support level, even as the domestic property sector remains in a protracted slump.

Policy Outlook

Traders are closely watching for concrete infrastructure project announcements following the recent fiscal expansion pledges. If the government targets specialized high-strength steel for bridge and rail projects, analysts expect a breakout above 3,200 Yuan in early Q1.