Steel Firms Up as China as China Tackles Overcapacity

2025-10-28 06:29 By Jam Kaimo Samonte 1 min. read

Steel rebar futures climbed to around CNY 3,100 per ton, hovering near two-month highs after China announced new measures to curb steelmaking capacity in key regions to rebalance supply and demand, improving profit margins.

Beijing recently proposed a stricter capacity swap plan that would prohibit adding new steel capacity in key areas, transferring capacity from non-key to key regions, or reallocating capacity among key zones.

The policy comes as China continues to face weak domestic demand amid a prolonged property downturn, leading to a supply-demand imbalance that has pressured steel margins.

Investors also tracked trade developments, with Presidents Trump and Xi meeting in South Korea this week and agreeing on key issues including halving fentanyl tariffs, resuming soybean purchases and removing rare earth export controls.



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