The Chinese government plans to upgrade its steel industry between 2025 and 2026, setting policy goals of reducing excess capacity, promoting technological upgrades, and supporting green and high-quality steel production.

These policy benefits have boosted market confidence, leading to a slight increase in Asian hot-rolled steel prices. However, overseas buying remains weak.

In addition to policy incentives, the appreciation of the RMB to 7.13 also boosted hot-rolled steel prices. However, the actual tradable prices are still lower than the mills’ offer.

Steel traders say that currently orders are still limited and there is uncertainty about whether the situation will improve in September. They can only wait and see.