Chinese Steel Markets Stabilize as Production Discipline Takes Effect

Supply Side Management

The recent stabilization in steel prices is a direct result of coordinated production cuts by high-cost mills in China. Faced with thin margins earlier in the year, producers have reduced output to ensure that warehouse stocks remain manageable. This disciplined approach has helped maintain the 3,000 Yuan psychological support level despite a slow construction season.

Regional Demand Variations

While the domestic real estate market remains a drag, demand from the manufacturing and automotive sectors is showing surprising resilience. Exports of high-value steel products also remain a bright spot for the industry, although rising trade tensions in Southeast Asia pose a potential risk to these channels in the new year.