Although the global manufacturing PMI returned to 51 in January, China’s steel market stayed weak in early February. With the Lunar New Year holiday from February 15 to 23, many end users left the market early, leading to slow trading and continued price drops in rebar, billets, and hot‑rolled coil. 

According to the National Development and Reform Commission, the market is expected to remain quiet through February due to the lack of positive drivers.

Weak demand has pushed inventories higher at both mills and warehouses. While some blast furnaces restarted, many steelmakers still face low profit margins, resulting in lower rebar output and hot‑rolled coil production below last year’s level.

In raw materials, iron ore prices fell after restocking ended, coking coal stayed firm due to reduced supply, and scrap steel saw a slight increase, supported by steady buying.

In the longer term, China’s steel industry is shifting toward advanced manufacturing and higher value‑added exports. However, short‑term momentum will remain limited until post‑holiday demand recovers.