Posted on 11 Jun 2025
China's domestic demand for long steel products is expected to weaken this month, as the annual college entrance exams and seasonal hot and rainy weather hamper construction activities across the country, according to Mysteel's latest report. Also, no significant macroeconomic initiatives by the central government are seen lifting the steel sector this month, and the China-U.S. trade relationship is likely to remain stable, the report notes.
In May, long steel demand declined modestly, with construction activities slowing in several regions. Holidays such as the Labour Day week and the Dragon Boat Festival also dampened steel consumption during the month, according to the report.
Mysteel's survey of more than 190 construction companies it tracks across the country showed that last month, their total long steel procurement amounted to 5.57 million tonnes, lower by 1.6% from April.
For June, long steel purchases by these enterprises are projected to fall by 3% from May to reach 5.4 million tonnes, according to the report.
Steel procurement plans vary across regions, it also notes. In Central China, construction companies reported a 2% on-month decline in planned steel purchases due to the seasonal slowdown in demand. Conversely, firms in Northeast China anticipate a 6% increase as they rush to complete ongoing projects.
An official from a construction firm in Guangdong in South China said local long steel procurement has slowed since May due to frequent rains and rising temperatures. The outlook for new project starts also appears bleak, he added.
Moreover, the survey found that 90% of the construction firms remain cautious and uncertain about future market conditions. As a result, most are purchasing long steel only as needed, avoiding stockpiling.
Of the surveyed companies, approximately 125 are maintaining low steel inventories, underscoring the overall cautious sentiment in the market.
As of early June, the spot trading volume of long steel products comprising rebar, wire rod, and bar-in-coil among the 237 commercial warehouses sampled by Mysteel nationwide averaged 105,398 tonnes/day, down 13.4% or 16,289 t/d from the same period last year.
Source:Mysteel Global
