Chinese Steel Prices Show Signs of Stabilization Amid Production Cuts

Supply Discipline Supports Price

Major Chinese steel producers have maintained strict production discipline heading into the year-end, which has successfully prevented a price collapse despite sluggish demand. Inventory data released this Friday shows a slight decline in warehouse stocks, indicating that supply is aligning with the lower winter consumption levels. This alignment is critical for maintaining the 3,000 Yuan psychological support level.

Export Market Challenges

While domestic prices stabilize, Chinese mills face increasing headwinds in the export market due to rising trade barriers from Latin America and Southeast Asia. Analysts warn that if export channels narrow further in 2026, the surplus steel could flood back into the domestic market, potentially threatening the current price stability unless further production cuts are implemented.