China Steel Product Prices Stabilize Amid Production Discipline

Mill Profitability Recovery

Recent data suggests a recovery in mill margins, with blast furnace profits averaging ¥189/mt. This recovery is largely due to lower input costs for iron ore and coking coal, allowing producers to maintain price discipline despite the ongoing property sector slowdown.

Export and Policy Outlook

Beijing has recently signaled new licensing requirements for steel exports starting in January. While this has caused some short-term uncertainty, the market expects that these measures will help regulate supply and support domestic prices in the first quarter of 2026.