Supported by continued loose monetary and credit policies, China's steel demand gradually stabilized in the first quarter of 2026, characterized by strong infrastructure construction, a stable manufacturing sector, and a slow recovery in the real estate industry. 

Data from the People's Bank of China shows a significant increase in market activity. In addition, credit and financing volumes remain high, with ample overall funding supply that continues to flow into the real economy. 

At present, infrastructure construction is the main driver, and demand for construction steel is rebounding, driven by special-purpose bonds and special treasury bonds. Steel demand in the manufacturing sector is also steadily recovering, with industries such as new energy and auto parts rebounding, supported by policies promoting equipment upgrades and technological transformation. 

The real estate market is still in the bottoming-out phase. Although new construction starts are weak, the decline in steel demand for the real estate sector has begun to narrow due to policies on affordable housing and urban-rural redevelopment.

Overall, continued policy funding and supply-side regulation will improve the supply-demand balance in the steel market, and demand is expected to continue its moderate recovery in the second quarter.