2025.12.1506:10:45UTC+00Steel Pressured by Regulatory Concerns

Steel rebar futures have dipped below CNY 3,060 per ton, lingering near their lowest levels in a month. This decline follows China’s Ministry of Commerce's decision to implement an export licensing regime for certain steel products starting January 1. The move comes amidst a surge in Chinese steel exports which have elicited protectionist measures from international markets. With domestic demand weakened by a prolonged downturn in the property sector, China's steel industry increasingly relies on exports. Recent industry data reveals that only 35% of Chinese steel mills were profitable at November's end, a decrease from 45% in late October, highlighting growing margin pressures. Furthermore, the market sentiment is dampened by underwhelming economic data for November in China. Retail sales growth and industrial production did not meet expectations, fixed asset investment fell more than predicted, and new home prices have now been declining for 29 consecutive months.