Early-year demand in China was boosted by equipment upgrades, the "old-for-new" stimulus policy, and expectations of renewed US tariffs under Trump’s administration, driving a surge in home appliance and auto exports, thereby supporting cold-rolled steel production. Despite active production by private mills, high-priced materials struggled to sell due to weak overall demand.

For the outlook of the second half of this year, the "old-for-new" policy is expected to continue to support the consumption of home appliances and automobiles. Besides, emerging sectors such as EV charging infrastructure and energy storage may offer new demand. 

With policy signals on energy use and crude steel output tightening, Chinese mills are now adjusting product strategies and may consider production cuts to cope with narrowing spreads between cold-rolled and hot-rolled and sluggish demand.