China Steel Market Recap | February 2-3, 2025
Global markets saw a sharp risk-off move today, with precious metals, base metals, and energy prices adjusting aggressively.
The session marked one of the most volatile trading days in recent months.
Steel, while not immune, showed relative resilience. Prices adjusted, but the physical market remained calmer as both supply and demand contracted simultaneously.
In such conditions, activity thins, liquidity tightens, and price discovery weakens rather than collapses.
Export markets remained firm and trading activity improved versus last week.
Far-ocean destinations, particularly the Middle East and South Asia, broadly accepted new base prices from major mills. With fewer low-priced offers available, exporter confidence has strengthened.
Key movements:
Local billet index: ↓ 20 RMB
Steel export index: ↓ USD 3
Iron ore: port prices ↓ 5 RMB/ton
Coke prices: ↓ ~3%
Today’s adjustment was largely macro-driven, triggered by policy developments and a sharp reduction in speculative positioning.
Market focus has now shifted toward stability and clearer directional signals once panic subsides.
In periods like these, discipline matters more than speed.
