FX.co ★ Steel Retreats as Seasonal Slowdown Looms

Steel rebar futures slipped toward CNY 3,200 per ton, retreating from nine‑month highs as expectations of a seasonal demand slowdown and softer downstream consumption weighed on the market. According to Mysteel’s latest monthly industry report, China’s construction steel prices are likely to come under pressure this month amid weakening supply–demand fundamentals. The report also highlighted that long steel output is set to rise, as improving profit margins spur domestic steelmakers to ramp up production, which could add further downward pressure later in the month as end-user demand eases, particularly in southern China during the wet season. Even so, stronger-than-expected economic data from China offered some support to market sentiment, with exports jumping to a record high in April as companies accelerated the stockpiling of components on concerns that the conflict in Iran could further push up input costs.