05.02.202606:00:46UTC+00Steel Slides to 1-Month Low

Steel rebar futures have declined to below CNY 3,080 per ton, reaching a one-month low, as Chinese steel mills reduce production in anticipation of the Lunar New Year holiday. This production cutback is due to several blast furnaces and electric-arc furnaces undergoing planned maintenance, subsequently affecting near-term demand. Despite this, industry data reveals that blast furnace utilization has remained robust, exceeding 86%, which is an increase from the previous week. Additionally, daily hot metal output has risen by 21,000 tons on a weekly basis. Concurrently, the World Steel Association has reported an anticipated reduction in the global steel supply by 2025, primarily driven by production cuts in China as part of its anti-involution strategy. China continues to lead as the world's largest steel producer, with an output of 960.8 million tons last year. This positions China ahead of India, the United States, Japan, and Russia, which collectively accounted for 395.4 million tons. On the demand front, official statistics indicate a rebound in Chinese construction activity in December, following four months of decline.