Steel Price rebar rose to the CNY 3,590 per tonne mark, extending its rebound from the 2-1/2-year low of CNY 3,464 touched on October 31st after Chinese authorities announced further support to the country’s giant but debt-ridden property sector, raising expectations of stronger demand for construction inputs.
The national bond regulator expanded a major financing support program by CNY 250 billion for the country’s private developers, aiming to counter the debt woes that hampered investments as the sector faced a period of record defaults.
The bullish momentum is also contributed to lower steel price and output as blast furnaces face output curbs during the winter due to pollution controls by the state. Still, steel remains over 30% down from its 2022 peak hit in May, as recession concerns and fears of Covid lockdowns predominate.
Last month, the World Steel Association revised its forecast of global demand to contract by 2.3% this year, compared to earlier forecasts of a 0.4% rise.