07.01.202606:50:45UTC+00Steel Hits Over 4-Month High

Steel rebar futures have surged to exceed CNY 3,130 per tonne, marking the highest point since late August. This increase is primarily driven by the anticipation that China, the leading consumer, will implement new policy measures aimed at stimulating economic growth. The People’s Bank of China has announced plans to lower the reserve requirement ratio and reduce key policy rates within the year. These steps are intended to ensure sufficient liquidity and maintain a supportive monetary environment, which is expected to positively impact demand. Furthermore, there is optimism in the markets that Beijing may introduce additional initiatives to bolster the struggling property sector. Concurrently, Chinese steel manufacturers are benefiting from strong steel profit margins, low levels of raw material inventories, and a resurgence in hot metal production. Additionally, a private survey revealed that business activity in China has stayed in expansion mode for the seventh consecutive month as of December. This growth has been primarily fueled by robust services activity and a resurgence in factory output.