FX.co ★ Steel Extends Decline Toward 8-Month Low

Steel rebar futures fell below CNY 3,040 per ton on Wednesday, nearing their lowest level in eight months as stricter European Union restrictions on steel imports clouded the demand outlook. The European Commission introduced a revised safeguard mechanism that significantly tightens duty-free steel imports in an effort to protect the bloc’s steel industry and boost capacity utilization. Starting Wednesday, the EU cut its annual tariff-free import quota by 47% to 18.3 million metric tons and imposed a 50% tariff on any imports above that quota across 26 steel product categories. Prices were further pressured by weak demand in top consumer China, where Zenith Steel reduced its early-July rebar prices, signaling softening consumption as the prolonged slump in the property sector continued to drag on construction activity.