FX.co ★ Steel Falls on Weak China Demand

Steel rebar futures have decreased to approximately CNY 3,060 per ton as of Thursday, reaching a near one-week low due to prevailing concerns over demand in China, the leading consumer. Recent data indicated a continued contraction in manufacturing and infrastructure investment throughout August, with end-use steel demand plummeting in the third quarter, primarily driven by the ongoing struggles in the property sector. Furthermore, crude steel production experienced a decline for the third consecutive month as steel mills in China's primary steelmaking hub, Tangshan, reduced their operations during the military parade. On the trading side, imports of steel products rose by 11.1% to 0.50 million tons, whereas exports declined by 3.4% to 9.51 million tons. Additionally, the inventories of major steel products have been on the rise since mid-August, underscoring weak consumption and the persistent challenges posed by the downturn in the real estate market.