China's steel traders are cautious about winter stockpiling amid low steel demand

       China’s steel traders are adopting a cautious approach to winter stockpiling this year due to low demand and market uncertainty. As the Chinese Lunar New Year approaches, steel market activity has slowed, and end-user stockpiling has been lower than usual. This reduced demand, combined with sufficient supply levels, means there are no immediate concerns about shortages, allowing traders to remain conservative.

       Given the uncertainty surrounding the market conditions, traders are prioritizing holding cash rather than committing to large stockpiling efforts. With winter stockpiling almost complete, many traders are opting to wait until after the holiday period, when they expect conditions to improve, especially as spring stockpiling typically sees a pickup in activity.

      Despite the cautious stance, traders remain cautiously optimistic about the future. For 2025, the expectation is that steel market stability will depend on factors like steel production and inventory levels. A recovery in market conditions is anticipated after the holidays, with more robust demand likely to emerge in the second half of the year.