FX.co ★ Steel Climbs Amid Rising Output

Steel rebar futures climbed to CNY 3,020 per ton on Monday, reaching their highest level in over three weeks, as Chinese steel production increased ahead of the National Day holidays. Industry reports indicated that blast furnace operating rates rose by 0.2 percentage points, reaching 90.4% last week, due to resumed activity in Northern China alongside stronger construction demands. Additionally, hot metal output, an important indicator for immediate iron ore consumption, also marginally increased to 2.41 million tons per day. However, China's crude steel production saw a decline for the third consecutive month in August, as mills in Tangshan, the nation's leading steel production center, reduced operations during the military parade. As the months progress, stakeholders continue to closely observe demand within the property sector and the level of infrastructure activity, both critical factors for steel consumption.