Steel Rebar Futures Stabilize Following Production Adjustments and Subsidy Programs

Mill Profitability and Production

SMM data indicates that domestic blast furnace steel mills have seen a recovery in profits, averaging 189 Yuan/mt across major products. This has been supported by a decrease in raw material costs, specifically coal and coke, which has allowed mills to maintain production discipline without seeing the deep losses of previous years.

Export Controls and Market Sentiment

The Chinese Ministry of Commerce's decision to implement an export licensing regime for certain steel products starting January 1 has caused some near-term uncertainty. However, the market remains optimistic that improving margins will encourage sustainable output levels heading into the new year.