Steel rebar futures rose to over CNY 3,300 per tonne, the highest in over one month, as a batch of stronger data in China indicated that Beijing’s stimulus measures are having an impact in key sectors of the economy. Housing prices in China fell the least since August at the end of the year, aligning with signs of traction in the housing market and signs of stronger construction demand following the sharp rebound in the NBS Construction PMI, which rose to 53.2 in December from the record low of 49.7 in November. Besides its major use in construction, demand for ferrous metals was also supported by a sharp acceleration in industrial output in December. Also, China exported 9.7 million tons of steel in December, a 26% surge from the previous year to cap off a record-setting year for steel exports, indicating that major Chinese mills continued to sell large volumes of metal to for foreign consumers despite the growing global protectionism rhetoric.
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