In June 2025, China's domestic steel market demonstrated unexpected strength despite ongoing economic adjustments and a complex global environment. Construction enterprise data showed a 2.5% month-on-month increase in actual steel procurement, reflecting market resilience. Supportive macroeconomic policies, easing of rainy season impacts in China’s southern area, and improved project funding helped maintain end-user demand, which is expected to remain stable in July.

Rebar’s average weekly apparent consumption reached about 2.22 million tons, just 4.49% below last year’s level. Despite the off-season, demand held firm, signaling solid support in the construction steel segment. Sampled firms reported 5.57 million tons of steel procured in June, below forecasts by 3.5% but still up from May. July procurement is projected to rise to 5.86 million tons.

However, new project launches remain limited, and extreme weather continues to impact demand. Most companies are keeping inventories low and adopting a cautious, demand-based purchasing strategy, with rising market pessimism affecting buying behavior. As the market moves into July, demand for construction steel is projected to stay relatively steady, aided by improved cash flow at certain construction sites and more favorable weather conditions. While the pace of new project launches remains limited and companies continue to adopt a cautious stance, the pattern of an off-season strength is expected to persist.