China Steel Prices Consolidate as Winter Production Cuts Balance Soft Demand

Supply Side Discipline

Chinese mills are maintaining strict production discipline to manage current inventory levels. This effort to prevent a glut during the February holiday period is the primary reason the 3,000-Yuan level remains a strong technical floor.

Iron Ore and Margin Squeeze

Iron ore prices holding above $130/ton continue to squeeze steelmaking margins. Producers are currently unwilling to lower offers further, waiting instead for post-holiday stimulus announcements that may boost spring infrastructure projects.