China's domestic market of construction steel saw a moderate price increase in March, with supply and demand gradually recovering. The recovery in supply was slow due to sluggish demand after the Lunar New Year and thin margins for steel mills. Coupled with rising raw material prices driven by geopolitical conflicts, strong cost support is the core of the current price rebound.

On the supply side, both the operating rate and output of construction steel plants increased in March compared to February. Despite the increase in steel mills' output, strict profit control led to reduced inventory pressure, with rebar stock decreasing by approximately 136,800 tons month-on-month.

Regarding the mills' production margin, the profitability of blast furnace mills improved slightly as the price increase slightly outpaced the rise in raw material costs. Looking ahead to April, China's construction steel market will enter a period of fundamental verification. Price trends are expected to rise slightly, driven by cost increases and the release of inventory pressure. A market turnaround is anticipated after a full demand recovery in mid-to-late April.