China is grappling with deflation [1]. It is likely they’re in a recession, at least in sectors relevant to housing demand. Given the state of regional government and developer finances, I don’t see where this de novo steel comes from.
Probably worth mentioning China kept buying the iron ore (it seems out of need), so this isn't about steel. Trade of coal and many other goods were restricted; there is now an anticipation that exports of wine, coal, lobsters, etc will rebound.
