China’s recent macroeconomic measures, including a May 7 reduction in the reserve requirement ratio, released CNY 1 trillion in long-term liquidity. Also, the authority decreased the policy interest rate. These measures eased financing pressures on industries like steel. The central bank also expanded refinancing for tech innovation and equipment upgrades from CNY 500 billion to CNY 800 billion, boosting expectations for cold-rolled coil (CRC) demand.

Further momentum came from the May 12 China-US trade agreement, which temporarily suspended a 24% tariff on Chinese goods for 90 days. The move reduced trade friction and improved market sentiment. Despite these favorable developments, market confidence remained weak. Spot market activity remained sluggish, with traders citing difficulties despite policy tailwinds.

On May 12, China’s CRC daily shipments hit a 2025 high at nearly 31,000 tons but quickly dropped the next day. Analysts expect prices to remain stable with mild short-term rebounds, though long-term trends will rely on real demand.