Steel Market Holds Steady as Focus Shifts to Global Infrastructure Demand

Inventory and Production Discipline

Chinese mills have successfully maintained production discipline through the winter lull. Portside iron ore stocks are elevated, but the proactive cuts in blast furnace output have prevented a surplus of finished steel, keeping the 3,000-Yuan support level intact.

Policy and Licensing

The new export licensing system effective this month is intended to monitor outbound volumes and mitigate trade friction. Traders expect a 5-7% decline in total 2026 exports, which may force mills to rely more on high-value steel products for the automotive and tech sectors.