Steel Prices Stabilize as Chinese Industrial Production Shows Resilience

Industrial Production Tailwinds

The latest economic indicators from China have shown surprising resilience in the industrial sector. Manufacturing output has remained firm, requiring steady supplies of steel for automotive and heavy machinery production. This has helped stabilize the market price around the 3,000 Yuan level, a psychological floor for many domestic producers who have been struggling with thin margins throughout the year.

Inventory Management and Future Outlook

Steel mills have been aggressively managing inventories to prevent a supply glut. While the property sector remains a drag on standard rebar demand, specialized steel for infrastructure projects and exports is seeing better performance. Analysts expect steel prices to remain range-bound in the near term as the market balances high raw material costs with the gradual recovery in end-user demand.