China Steel Prices Show Signs of Recovery Amid Infrastructure Push

Steel prices in China have shown encouraging signs of recovery over the past week, driven by renewed government infrastructure spending and improving demand from the construction sector.

Hot-rolled coil (HRC) prices increased by approximately 2.3% week-on-week, while cold-rolled products saw gains of 1.8%. The uptick comes as local governments accelerate infrastructure projects ahead of the year-end deadline for budget allocation.

“We’re seeing stronger-than-expected demand from construction sites, particularly in tier-2 and tier-3 cities,” said a senior analyst at a major steel trading firm in Shanghai. “The government’s commitment to infrastructure investment is providing solid support for steel consumption.”

The recovery is also supported by production cuts at several major steel mills, which have helped reduce inventory levels at key distribution hubs. Steel inventories in major Chinese cities fell by 4.2% last week, marking the third consecutive week of decline.

Looking ahead, market participants remain cautiously optimistic. While seasonal factors typically lead to slower demand in winter months, the strong policy support and controlled production levels are expected to provide a floor for prices.