Steel rebar futures slipped to around CNY 3,100 per ton in early September, retreating from recent multi-month highs as surging oil prices intensified inflation concerns and strengthened expectations of imminent interest rate hikes, pressuring the demand outlook. Tighter monetary policy could ultimately slow global economic growth and curb consumption of industrial metals.
Previously, steel prices had rallied sharply in August, supported by expectations of a seasonal rebound in demand ahead of the traditional September peak construction period. Market sentiment was further buoyed by reports that China’s National Development and Reform Commission had convened meetings in recent weeks, urging local governments to speed up the rollout and construction of major projects.
Nonetheless, China’s non-manufacturing PMI — which encompasses both services and construction — remained unchanged at 49.0, the same as in July and still the weakest reading since December 2022, underscoring persistent softness in underlying demand.
