Recent trends and outlook for the steel market

Since entering 2026, China's steel market has shown an overall upward trend with fluctuations. On the supply side, steel mills have released capacity rationally, with crude steel output slightly down year-over-year, leading to improved market supply-demand dynamics. On the demand side, infrastructure investment continues to gain momentum, real estate policy effects are gradually materializing, and the manufacturing PMI has remained above the 50-point threshold for several consecutive months, indicating steady recovery in downstream demand. By product type, hot-rolled coils have performed strongly driven by manufacturing demand; cold-rolled coils have seen prices rise steadily amid support from the automotive and appliance sectors; and galvanized coils have remained stable, supported by infrastructure and construction demand. Looking ahead, as policies aimed at stabilizing growth continue to take effect, steel demand is expected to maintain its growth trajectory.