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Demand situation in China's steel market during peak season of March will be the key

25 Feb 2026 16:08 reported by Alston Tsai

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After the Chinese New Year holiday, market prices influenced by uncertainties in actual demand are currently flat compared to the pre-holiday level. 

Looking ahead, with slow supply increases and the traditional peak season demand, the price trend may initially decline before rising, with actual performance depending on sales conditions in March. 

During the holiday, upstream steel mills exhibited a divergent pattern; blast furnace production remained relatively stable, while electric arc furnaces generally suspended operations due to cost considerations. 

Overall, steel mills have limited production profits, and with the continued implementation of carbon reduction policies, their resumption of production is proceeding cautiously, resulting in overall output remaining low in the short term.

In terms of market sentiment, most Chinese suppliers hold a cautiously optimistic attitude, with stable prices in the construction steel market, supported by policy costs and the upcoming peak season demand.

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