China’s rebar consumption was expected to be 7 million tons in January, accounting for 3.3% of the annual proportion, higher than the figure in the previous month but 27% lower compared to the year-ago level.

In January, China’s planned steel purchases accounted for about 3.1% of the total annual purchases. More than 90% of downstream buyers said that they would not have purchasing plans needed in the first quarter of next year before the new year holiday as they are worried about possible price drops.

China’s experts forecasted that the first-quarter consumption in 2023 will be the lowest due to the Spring Festival and New Year's Day holidays in January. In February, the consumption will recover after the workers return to work. In March, the operating rate of construction sites will return to more than 85%, so the consumption will improve significantly.