Steel Pulls Back on China Production Curbs

2026-11-09 07:58 By Jam Kaimo Samonte 1 min. read

Steel rebar futures dropped below CNY 3,040 per ton, retreating from one-week highs as environmental restrictions forced production curbs across northern China.

Authorities in major steelmaking centers, including Tangshan and Handan in Hebei province, introduced emergency response measures effective Monday in anticipation of severe air pollution.

The restrictions added further pressure to metal prices, which were already facing seasonal weakness in demand.

Industry data showed that average hot metal production among Chinese steelmakers declined for a fourth consecutive week, falling 0.5% from the previous week to 2.31 million tons as of November 5.

Over the longer-term, the World Steel Association now expects global steel demand to contract by 0.1% this year, reversing its earlier forecast of 0.3% growth.

The report also projected that China's steel consumption would decline by 2% in 2026 as the downturn in the property sector continues to persist longer than initially anticipated.



News Stream
Steel Pulls Back on China Production Curbs
Steel rebar futures dropped below CNY 3,040 per ton, retreating from one-week highs as environmental restrictions forced production curbs across northern China. Authorities in major steelmaking centers, including Tangshan and Handan in Hebei province, introduced emergency response measures effective Monday in anticipation of severe air pollution. The restrictions added further pressure to metal prices, which were already facing seasonal weakness in demand. Industry data showed that average hot metal production among Chinese steelmakers declined for a fourth consecutive week, falling 0.5% from the previous week to 2.31 million tons as of November 5. Over the longer-term, the World Steel Association now expects global steel demand to contract by 0.1% this year, reversing its earlier forecast of 0.3% growth. The report also projected that China's steel consumption would decline by 2% in 2026 as the downturn in the property sector continues to persist longer than initially anticipated.
2026-11-09
Steel Rebounds from Multi-Month Lows
Steel rebar futures climbed to around CNY 3,045 per ton, rebounding from near three-month lows as improving profit margins, driven largely by lower coke costs, strengthened the market outlook. Traders also expected coke prices to decline further in the coming week, easing pressure on steel mills. However, the World Steel Association recently revised its global steel demand forecast downward, now anticipating a 0.1% contraction this year, compared with its earlier projection of 0.3% growth made in April. The report indicated that China's steel consumption is expected to decline by 2% in 2026 as the downturn in the property sector persists longer than previously expected. In contrast, India continues to stand out as the fastest-growing major steel market, with demand projected to expand by 7.9% in 2026 and a further 8% in 2027.
2026-11-05
Steel Declines to Near Three-Month Low
Steel rebar futures fell toward CNY 3,000 per ton, hitting near three-month lows as weak profit margins, sluggish downstream demand and elevated inventory levels continued to pressure the market. Environmental restrictions across several northern Chinese provinces also weighed on hot metal production, although output is expected to rebound once the restrictions are lifted. Meanwhile, the World Steel Association recently downgraded its global steel demand outlook, projecting a 0.1% contraction this year, reversing its earlier forecast of 0.3% growth made in April. According to the report, Chinese steel consumption is expected to fall by 2% this year as the property sector downturn proves more prolonged than previously anticipated. In contrast, India remains the fastest-growing major steel market, with demand forecast to increase by 7.9% in 2026 and 8% in 2027.
2026-11-03