China’s steel market maintained a steady-to-slightly weaker tone on the 5th, with spot prices largely stable while steel futures edged lower, pulling the overall price center marginally down. Trading activity remained muted as construction sites gradually entered the holiday slowdown, leading to shrinking market turnover and increasingly visible Lunar New Year effects. External markets continued to dominate sentiment, with declines in precious and base metals, equities, as well as softer coking coal and iron ore prices weighing on finished steel.

Although open interest in rebar futures increased, prices did not fall sharply, indicating balanced positioning and divergent expectations, while holiday disruptions limited any near-term change in supply-demand fundamentals. Overall, steel prices remain range-bound with low volatility, and the market is expected to stay in consolidation mode with reduced volumes until clearer demand signals emerge after the holiday.