Steel rebar futures climbed above CNY 3,080 per ton, rebounding from multi-week lows amid improving end-user demand, with Chinese mills ramping up production.

Sentiment was also supported by optimism over a potential diplomatic resolution to the Iran conflict, with a longer-term ceasefire expected to revive Middle Eastern demand for Chinese steel.

The conflict has disrupted trade flows through the Strait of Hormuz, reducing metals shipments to the Gulf.

The region was China’s second-largest steel export destination last year, accounting for about 16% of its record-high exports.

Meanwhile, the European Union has moved to raise tariffs on imported steel to 50% in a bid to shield its domestic industry from a surge in low-cost Chinese supply.

China’s steel exports continue to face growing headwinds from anti-dumping measures and rising protectionism abroad, alongside a prolonged property sector downturn and weaker construction activity at home.
Source: Trading Economics