Steel rebar futures rose above CNY 3,080 per ton, snapping a recent losing streak as Chinese steel mills ramped up production. A sharp decline in raw material prices has improved profit margins, encouraging higher output of molten iron.
Market sentiment was also influenced by global supply concerns after peace talks between the United States and Iran in Islamabad over the weekend ended without an agreement. President Donald Trump announced plans to blockade the Strait of Hormuz and is reportedly considering renewed strikes on Iran.
China ships substantial volumes of steel products to the Middle East, including hot-rolled coils, pipes, and rebar, with Saudi Arabia and the UAE among its key export destinations. Nonetheless, the domestic steel industry remains under strain from a prolonged downturn in the property sector and weaker construction activity, while exporters face mounting challenges from anti-dumping measures and rising protectionism overseas.
