Posted on 13 Mar 2026
China's steel market is expected to gain momentum this month, with prices likely to trend higher as the sector enters its traditional peak season in spring and market sentiment turns optimistic. This is according to the most recent survey of the steel sector's health conducted by the National Development and Reform Commission (NDRC), which covered major wholesale steel markets in South China, Shanghai and Tianjin.
The survey showed a dramatic shift in sentiment across key indices. The Sales Price Expectation Index for China's wholesale steel market had surged 38.51 percentage points from February to 75.37%, far above the 50% threshold and indicating strong bullish sentiment among market participants. The Purchase Price Expectation Index had also climbed sharply, rising 27.79 percentage points to 72.97%.
Demand and inventory indicators pointed to a significant market turnaround, according to the survey results. The Sales Volume Expectation Index had skyrocketed by 66.04 percentage points on month to 82.46%, reflecting expectations of a substantial recovery in end-user demand, the NDRC notes.
Meanwhile, the Inventory Expectation Index plunged by 37.1 percentage points to 38.81%, suggesting that market participants anticipate inventories will be drawn down as consumption picks up.
Cost pressures are expected to remain manageable while profit margins improve, the survey results suggest. The Sales Cost Expectation Index had edged up 0.2 percentage points to 58.96%, indicating limited changes in input costs. In response, the Sales Profit Margin Expectation Index had jumped 37.56 percentage points to 64.93%, pointing to a notable improvement in profitability driven by stronger demand.
This month overall, the steel market is set to enter the traditional "golden March and silver April" peak season, with both supply and demand expected to recover, the NDRC suggests. Continued supportive macro policies targeting the property sector have further boosted market confidence. These factors combined are expected to drive steel prices higher throughout March, it explained.
Source:Mysteel Global
