Steel rebar futures climbed to approximately CNY 3,000 per tonne on Wednesday, marking a two-week high. This surge came as traders reacted positively to encouraging developments in the ongoing US–China trade negotiations. Following two days of discussions in London, both nations established a framework to implement the Geneva consensus, reaffirming commitments made during a recent conversation between Presidents Trump and Xi. In addition, Beijing is anticipated to lift restrictions on rare earth exports, and there is speculation that the United States might relax controls on the sale of advanced technology to China. These potential developments could foster improved global trade sentiment and bolster demand for industrial commodities like steel.
Nevertheless, the China Iron and Steel Association has highlighted challenges within the industry, noting that the persistent price competition in the electric vehicle sector is exerting downward pressure on steelmakers. Automakers are reportedly pushing for reductions in the cost of steel plates used in vehicle production, exacerbating the pressure on profit margins across the sector.
