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China Steel Prices Show Signs of Stabilization Amid Weak Domestic Demand and Rising Exports

Chinese Steel Prices Stabilized by the End of 2025

After months of weak domestic demand, the Chinese steel market showed initial signs of stabilization. As of December 10, 2025, the average steel price hovered around $450 per ton, up 0.82% from the previous trading day. Analysts believe this slight rebound was mainly driven by market expectations of policy support and seasonal demand.

Nevertheless, the overall market remains sluggish, with weak demand from the real estate and construction sectors continuing to put pressure on prices. "The short-term rebound is mainly driven by market sentiment rather than fundamental factors," industry analysts noted.

Production Declines as Market Weakens

According to recent data, China’s crude steel production in 2025 is expected to fall below 1 billion tons, marking the first time since 2019 that production dips under this threshold. The decline reflects both slowing construction activity and reduced infrastructure investment.

Interestingly, iron ore imports remain high, suggesting that steelmakers anticipate potential demand recovery or government stimulus measures in the near future.

Cost Pressures and Industry Challenges

While steel prices may see short-term recovery, long-term challenges persist:

Demand uncertainty: Real estate and infrastructure sectors remain weak.

Raw material fluctuations: Prices of key inputs like coking coal and iron ore can squeeze margins.

Profitability pressures: Despite lower input costs, steelmakers face tight profit margins amid weak domestic consumption.

Industry analysts caution that without a significant policy-driven demand boost, steel prices may struggle to return to previous highs.

Outlook for China Steel Prices

In summary, China’s steel market in late 2025 is characterized by low prices, moderate volatility, and selective rebounds. Market sentiment, export growth, and government policies may provide temporary support, but the sector continues to face structural challenges.

Investors and stakeholders should watch:

Government stimulus in infrastructure and construction projects.

Trends in Chinese steel exports and global demand.

Fluctuations in raw material costs.

The coming months will be critical in determining whether the steel market can stabilize and regain momentum or continue under pressure from weak domestic consumption.

ROYAL GROUP

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Post time: Dec-11-2025