FX.co ★ Steel Resumes Decline

Steel rebar futures dipped to approximately CNY 3,060 per ton on Thursday, rolling back gains from the previous session as uncertainties surrounding demand in China continued to dampen market sentiment. Investors are keenly anticipating policy directions from the Central Economic Work Conference, which will establish growth targets and outline the economic agenda for the coming year. Earlier this week, China's Politburo underscored the importance of strengthening domestic demand by 2026 but indicated a cautious stance on stimulus measures, withholding any immediate support. Industry reports further exacerbated concerns, revealing that only 35% of Chinese steel mills were profitable by the end of November, a decline from 45% in late October. Nonetheless, steel mills proceeded with restocking raw materials despite Beijing's efforts to curb overcapacity, buoyed by enduring demand from international markets.