FX.co ★ Steel Drops to 4-Week Low

Steel rebar futures fell below CNY 3,090 per ton, hitting a four-week low as Chinese markets reopened after the week-long holiday, with the sector still struggling against worsening profit margins. Industry data showed that by the end of September, only 6.9% of Chinese steelmakers were operating profitably, while average daily hot metal output dropped to a six-month low of 2.34 million tons. Reports also indicated that some Chinese steel producers had started, or were planning, maintenance work on their equipment as growing losses continued to weigh on operations. At the same time, China’s steel industry faced persistently weak demand amid an extended property slump and muted construction activity. Separately, data from the World Steel Association showed that global crude steel production fell 1.2% year-on-year to 144.2 million tons in August.