Posted on 15 Sep 2025
China's demand for construction steel is expected to recover slightly in September, mainly thanks to better weather conditions in some regions and the improved financial health of some non-real estate sectors, according to Mysteel's latest monthly survey released on September 12.
The prediction is based on the actual volumes of construction steel products bought by domestic end-users in August and their purchase plans for this month.
Mysteel's regular tracking of over 200 domestic construction enterprises showed that they purchased a total of 5.79 million tonnes of construction steel products in August, higher by 3% from July but 1.2% below their planned amount for last month.
For September, their planned buying volume is estimated to reach 6.13 million tonnes, higher by 5.9% from their actual purchases in August, the survey results showed.
Although some construction companies in North China were requested to briefly suspend work on some projects in early September to improve air quality, the impact on construction steel demand was limited because the duration was short.
Besides, September is usually considered the start of China's peak season for steel consumption, with the return of milder weather conditions conducive to outside work. Construction steel demand from end-users is expected to recover gradually. Meanwhile, the easing of financial pressure on some sectors excluding the real estate may also boost their steel demand to some extent, the findings showed.
Mysteel's other survey indicated that over September 1-11, the daily trading volume of construction steel comprising rebar, wire rod and bar-in-coil among the 237 trading houses nationwide under its tracking averaged 98,213 tonnes/day, slightly higher than the average of 98,150 t/d for August.
However, the growth in construction steel demand is likely to be limited this month due to a lack of new projects, the findings showed. At the same time, disruptions caused by high daytime temperatures and heavy rain in some parts of the country are also likely.
Given the uncertainties facing the domestic steel market, many construction enterprises are cautious about building up stocks except for buying some steel items to fulfil their immediate needs, the survey findings showed. The contractors are maintaining low inventory levels to reduce risks, a survey respondent explained.
So far this month, China's finished steel prices have been hovering at a low level, with the national price of HRB400E 20mm dia rebar under Mysteel's assessment reaching Yuan 3,273/tonne ($459/t) including the 13% VAT as of September 11, slipping by Yuan 53/t from the end of August.
The weakness in domestic rebar prices has squeezed the Chinese mills' profits on sales of this product, persuading some to pare back their rebar output this month, Mysteel Global noted. Over September 4-10, rebar production among the 137 Chinese steel mills across the country tracked by Mysteel totalled 2.12 million tonnes, lower for a second week by 3.1% from the prior week, or down by 3.9% compared with the end of August.
Source:Mysteel Global
