Steel rebar futures climbed above CNY 3,070 per ton, nearing four-week highs as Chinese authorities ordered production cuts across northern steelmaking hubs to curb pollution during the annual sessions of the National People’s Congress.

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

Tighter supply has provided short-term support to prices, as reduced output typically improves profitability and margins for steel producers.

However, demand in top consumer China remained soft following the Lunar New Year holiday, and analysts expect steel consumption to ease in the first half of the year amid persistent weakness in the property sector and cautious industrial activity.
Source: Trading Economics