China Steel Rebar Jumps on Post Holiday Industrial Optimism

Construction Site Resumption

Laborers are returning to construction hubs across China, and physical delivery orders for rebar have seen a 12% uptick on the first day of full trading. This suggests a robust pipeline of existing projects is ready to proceed.

Inventory Management

While mill inventories built up during the break, the rate of accumulation was lower than the 5-year average due to aggressive pre-holiday production cuts. This lean inventory position is providing a tailwind for price increases.