Steel Rebar Futures Rise from Four-Year Low: Signs of Improving Global Demand

On April 3, steel rebar futures hit a four-year low of CNY 3,330 per ton in China. This drop was considered to be a reflection of the prolonged pressure in global markets. However, in the following days, steel prices rebounded sharply, reaching CNY 3,550 per tonne on signs of recovery in global demand.

Export Records from China and Recovery in Domestic Demand:

The latest customs data revealed that steel exports from China rose 25% year-on-year in March to nearly 10 million tons, the highest level since 2016. This increase is seen as an indication of a resurgence in global demand for steel and the beginning of an intensive transformation, especially in the construction sector.

Economic Growth and Beijing’s Incentives:

China’s GDP grew by 5.3% year-on-year in the first quarter, well above market expectations. This growth was supported by the Beijing government’s incentives to stimulate the economy, especially in steel-intensive sectors. Fixed asset investment also accelerated more than expected in the first quarter. These steps by the government increased demand for steel in the domestic market and paved the way for higher prices.

International Markets and Outlook:

Although uncertainties in the global economy persist, positive news from China has buoyed steel markets around the world. Experts predict that the increase in China’s exports will strengthen trade relations with other major economies, especially Europe and the US, and increase demand for steel, especially for construction, in these regions.

Conclusion:

The sudden surge in steel rebar futures is seen as a positive development for both the Chinese economy and the global steel market. The improvement in global demand and the record increase in China’s exports offer promising signals for the stabilization of steel prices in the coming period.