China Steel Rebar Stabilizes as Lunar New Year Holiday Lull Begins

Seasonal Hiatus and Supply Discipline

Chinese mills have successfully defended the 3,100 Yuan floor by implementing mandatory winter production cuts. This supply-side discipline has prevented an inventory overhang during the seasonally weak month of February.

Iron Ore Support

The resilience of iron ore prices above $130/ton has provided significant cost-push support for steel. Mills are currently unwilling to lower prices further, despite the lack of immediate demand, due to thinning production margins.