FX.co ★ Steel Drops to Two-Month Low

Steel rebar futures fell to around CNY 3,120 per ton, their lowest level in two months, as weaker-than-expected economic data from China dampened demand prospects. Crude steel output in the world’s largest producer continued to lose momentum amid the prolonged property sector downturn, with May production declining 2.7% year-on-year to 84.35 million tons. Broader economic indicators also signaled a slowdown, as both fixed-asset investment and consumer spending retreated to levels last seen during the pandemic. Earlier data showed that China’s steel exports rose 8.8% in May from the previous month, supported by subdued domestic demand and wider profit margins on overseas sales. However, total steel exports for the first five months of the year were still 8.1% lower than a year earlier, underscoring the impact of rising trade barriers in several major export markets.