Steel Eases as China Curbs Output

2026-02-26 06:47 By Jam Kaimo Samonte 1 min. read

Steel rebar futures edged lower toward CNY 3,060 per ton, trimming gains from the previous session after Chinese authorities instructed mills in Northern China to temporarily scale back operations to curb pollution during the annual sessions of the National People's Congress.

Under the so-called “blue skies” directive, mills were required to cut blast furnace output by 30% for one week starting March 4 to limit emissions in Beijing during the high-profile political gatherings.

Investors also continued to gauge demand conditions in top consumer China, where economic activity has remained subdued following the Lunar New Year holiday.

Analysts expect steel consumption to soften in the first half of the year amid lingering property sector weakness and cautious industrial activity.

Meanwhile, the industry is monitoring potential trade repercussions after the US Supreme Court’s ruling on tariffs, which could prompt additional protectionist measures.



News Stream
Steel Eases as China Curbs Output
Steel rebar futures edged lower toward CNY 3,060 per ton, trimming gains from the previous session after Chinese authorities instructed mills in Northern China to temporarily scale back operations to curb pollution during the annual sessions of the National People's Congress. Under the so-called “blue skies” directive, mills were required to cut blast furnace output by 30% for one week starting March 4 to limit emissions in Beijing during the high-profile political gatherings. Investors also continued to gauge demand conditions in top consumer China, where economic activity has remained subdued following the Lunar New Year holiday. Analysts expect steel consumption to soften in the first half of the year amid lingering property sector weakness and cautious industrial activity. Meanwhile, the industry is monitoring potential trade repercussions after the US Supreme Court’s ruling on tariffs, which could prompt additional protectionist measures.
2026-02-26
Steel Rebounds as China Production Resumes
Steel rebar futures climbed above CNY 3,060 per ton in late February, rebounding from multi-month lows as economic activity in China accelerated following the extended Lunar New Year holiday, with mills expected to ramp up production. However, analysts anticipate that China’s steel demand will weaken in the first half of the year, potentially constraining the durability of the rebound. The steel industry may also be concerned that the US Supreme Court’s ruling on tariffs may trigger further protectionist measures given robust Chinese steel exports last year. Still, China is expected to face lower average duties on its metal-intensive exports following the court’s decision, potentially boosting exports. On the policy front, the People's Bank of China kept its benchmark lending rates unchanged for a ninth straight month, offering limited fresh stimulus to the domestic steel market.
2026-02-25
Steel Hits Multi-Month Lows as China Reopens
Steel rebar futures slid below CNY 3,040 per ton in late February, touching their weakest levels since early November as mainland China markets reopened after the long Lunar New Year break. Demand for the key construction material is expected to gradually recover as economic activity gains traction post-holidays. During the break, Chinese mills suspended production, with both blast furnaces and electric arc furnaces undergoing scheduled maintenance. The People’s Bank of China left its benchmark lending rates unchanged for the ninth consecutive month, offering little fresh stimulus to the market. Traders also weighed the implications of potentially lower US levies after the US Supreme Court struck down President Donald Trump’s reciprocal tariffs. Even with Trump threatening to raise global tariffs from 10% to 15% in response to the ruling, China is still expected to face lower average duties on its metal-intensive exports.
2026-02-24