China’s steel structure industry is facing a weak recovery due to sluggish macroeconomic conditions and limited policy momentum. While local debt policies have supported infrastructure projects, the struggling real estate sector remains a major drag. Most companies continue cautious purchase-on-demand inventory strategies, with raw material stockpiles falling by 1.69% month on month. Rising raw material costs have led steel mills to maintain prices, but downstream buyers face difficulty absorbing increases, squeezing profits.

Infrastructure-related orders dropped due to delayed funding, while export orders fluctuated amid geopolitical risks in Southeast Asia and the Middle East. A temporary market boost is possible in May, but soft demand and high inventories could weaken conditions later.

Real estate investment fell by 9.9% in the first quarter, and a substantial demand gap remains despite announced urban renewal plans. Meanwhile, the engineering machinery industry saw raw material inventory drop 5.98%, with activity still subdued.

The home appliance and auto industries showed modest recovery, with rising domestic demand and increased usage of high-end steel, especially for electric and smart vehicles, offering limited but stable support to the steel market.