With the week ending on February 21, the U.S., Germany and China Steel Rebar market witnessed a price surge this week, fuelled by supply constraints and strong demand from key industries.

The U.S. Steel Rebar market saw a 2.5% price increase this week, reflecting a combination of supply constraints and strong demand from key industries. Additionally, steel availability in the U.S. remains constrained, as domestic raw steel production recorded a 0.2% decline at the end of January, according to the American Iron and Steel Institute (AISI). This slight reduction is enough to create strain in an already tight market. Moreover, steel mills are closely monitoring production levels to balance supply with market demand, ensuring that any further tightening does not disrupt long-term stability.

On the demand side, the automotive sector remains a key driver of growth, reinforcing the need for Steel Rebar products. January 2025 saw an increase in new vehicle sales compared to the same period last year, highlighting a strong start for automakers like Honda, Hyundai, and Kia. This growth in auto sales signals sustained market resilience, even amid broader economic uncertainties. Meanwhile, infrastructure and construction activity continue to support demand for Steel Rebar.

The German Steel Rebar market saw a 0.5% price increase this week, driven by supply constraints and resilient demand from the construction sector. The German Steel Rebar supply has been impacted by reduced production capacity, notably due to Georgsmarienhütte Gruppe’s EAF shutdown in Osnabrück. This strategic decision was prompted by rising energy costs, making it economically unfeasible to sustain operations at previous levels.

Additionally, broader production adjustments across Europe, driven by energy price volatility and environmental regulations, have further strained supply conditions. Despite supply constraints, demand for Steel Rebar in Germany remains steady, supported by gradual improvements in the construction sector. This is a positive signal for the Steel Rebar market, as any improvement in construction output directly translates to increased demand for reinforcement materials. As a result, tightened availability and heightened demand, contributing to price increases.

The prices for Steel Rebar in China increase by 0.8%. China's steel production landscape remains uncertain as traders and manufacturers monitor potential government interventions. Moreover, Crude steel output declined in January compared to the previous year, underscoring the industry's ongoing adjustment to market conditions. Recent reports suggest that authorities may impose large-scale production curbs starting in 2025. These cuts mark a significant shift, particularly the rumoured 50 million metric ton reduction in 2025 alone.

Additionally, Steel Rebar demand in China increases. The construction sector continues to drive steady rebar usage, although broader economic conditions and infrastructure developments play a crucial role in shaping future demand.

According to ChemAnalyst, Steel Rebar prices in the U.S., Germany, and China are expected to increase, primarily influenced by supply chain disruptions and shifting demand dynamics.