FX.co ★ Steel Rises as Traders Assess China Data

Steel rebar futures rose to around CNY 3,000 per tonne on Monday, recovering from last week's downturn as investors considered the latest economic data from China, the globe’s foremost steel consumer. Retail sales in China for May surged beyond expectations, hitting the highest growth rate seen in 15 months, which suggests potential resilience in consumer demand. Nevertheless, industrial production grew at its slowest rate in six months, underscoring continuing challenges within the broader industrial sector. The ongoing conflict between Israel and Iran also captured attention, with ongoing assaults on energy infrastructure disrupting markets and heightening concerns about global economic stability. Concurrently, the China Iron and Steel Association cautioned about a budding price war within the electric vehicle industry, which is exerting greater pressure on steelmakers. Automakers are reportedly urging suppliers to reduce prices on steel plates used in car manufacturing, further compressing industry profit margins.