Steel rebar futures climbed above CNY 3,250 per ton, reaching their highest level since July last year as expectations for stronger demand supported the market.
Steel production in China remained stable, while improved profit margins at mills encouraged firmer output and boosted sentiment across the sector.
Stronger-than-expected economic data from China also underpinned prices, with exports surging to a record high in April as companies accelerated stockpiling of components from the manufacturing hub amid concerns that the Iran conflict could drive input costs even higher.
In addition, China’s consumer inflation exceeded forecasts, while producer prices recorded their strongest increase in nearly four years, pointing to a continued recovery from the deflationary pressures that weighed on the economy in recent months.
Still, analysts warned that the approaching seasonal slowdown in steel demand and softer downstream consumption could cap further upside in steel prices.
Source: Trading Economics
