en.Wedoany.com Reported - China's steel market is expected to show a fluctuating downward trend in the second half of 2026, driven primarily by the divergence between supply and demand. According to an analysis from Yieh.com, demand in the manufacturing sector will remain strong, particularly in areas such as electric vehicles, shipbuilding, offshore wind power, and high-tech equipment. Meanwhile, the real estate industry will continue to be a major factor constraining the consumption of construction steel.

On the supply side, stricter carbon reduction measures, crude steel output control policies, and environmental restrictions in the production process are expected to put pressure on steel production, a situation that helps maintain overall market balance.

From an inventory cycle perspective, steel inventories are expected to increase during the traditional demand off-season from July to August, followed by a decline as construction activities gradually recover toward the end of the third quarter.

In terms of costs, a decline in iron ore prices may lower raw material costs, but rising carbon compliance costs and the advancement of the industry's green transformation are expected to support steel prices. Overall, the profitability of steel producers may still face significant pressure.