Steel Trade Market Trends In March 2026
In March 2026, the Steel Circulation PMI jointly released by the China Metal Materials Circulation Association and Lange Steel stood at 53.4%, up 5.4 percentage points from the previous month. The index rebounded rapidly into the expansion range, indicating a significant improvement in activity within the steel circulation market. However, the steel market is still facing a tug-of-war between bullish and bearish factors.
The escalation of global geopolitical conflicts has directly impacted the cost side of the steel industry, becoming a key driver pushing steel prices upward. In contrast to the strong performance of international cost factors, domestic end-user demand remains insufficient. Both mill inventories and social inventories have only just begun to decline, which continues to exert downward pressure on steel prices.
Although domestic macroeconomic policies remain moderately accommodative—with the central bank maintaining ample market liquidity and fiscal policies continuing to support economic stability—the core demand from end-use sectors of steel is still relatively weak.
Overall, aside from the firm support from the cost side, the pace of inventory destocking and the level of production releases by steel mills will become the key factors shaping the market dynamics during the peak season. According to the comprehensive analysis by Lange Steel Research Center, the domestic steel market is likely to experience a rise followed by a pullback in April.
(Source: China Metal Materials Circulation Association)
