Steel rebar futures slid below CNY 3,040 per ton in late February, touching their weakest levels since early November as mainland China markets reopened after the long Lunar New Year break. Demand for the key construction material is expected to gradually recover as economic activity gains traction post-holidays. During the break, Chinese mills suspended production, with both blast furnaces and electric arc furnaces undergoing scheduled maintenance. The People’s Bank of China left its benchmark lending rates unchanged for the ninth consecutive month, offering little fresh stimulus to the market. Traders also weighed the implications of potentially lower US levies after the US Supreme Court struck down President Donald Trump’s reciprocal tariffs. Even with Trump threatening to raise global tariffs from 10% to 15% in response to the ruling, China is still expected to face lower average duties on its metal-intensive exports.
