Steel rebar futures traded below CNY 3,140 per ton, hovering near six-week lows even after data showed an 8.8% month-on-month increase in China’s steel exports in May, driven by subdued domestic demand and stronger margins on overseas sales. Exports reached 10.34 million metric tons of steel used in construction and manufacturing, the highest volume since December.
Despite the May surge, total steel exports for the first five months of the year were still 8.1% lower than in the same period a year earlier, reflecting intensifying trade protectionism in key foreign markets. At the same time, China’s steel market has entered its seasonally weak demand phase earlier than usual this year, as persistent rainfall and an early onset of summer heat have constrained activity. Construction work typically slows during periods of heavy rain and high temperatures, dampening demand for steel products.
