China Steel Rebar Stabilizes as Raw Material Support Counteracts Weak Demand

Cost-Push Support

Chinese steel mills are facing a 'cost-push' scenario. Despite lackluster demand for finished products, rising prices for upstream materials have forced a slow rebound in steel futures. Analysts describe this move as capital-driven rather than a fundamental improvement in construction demand.

Mill Production Discipline

Producers have maintained production discipline through the winter lull. By keeping capacity utilization low, mills have prevented a significant inventory build-up, which is helping to stabilize prices above the critical 3,000 Yuan support level.