FX.co ★ Steel Drops on Weak China Demand

Steel rebar futures declined to approximately CNY 3,080 per ton on Tuesday, retreating from their near four-week high. This decline occurred as China's end-use demand weakened in the third quarter, despite previous strength in manufacturing-related consumption. As the world's leading steel producer, China has taken steps to curb new capacity in an effort to address oversupply and declining prices, leading to increased stockpiles. In the preceding month, Beijing mandated major steel mills to cease production as part of its commitment to tackling overcapacity in the ferrous metals sector. In other parts of Asia, steel production showed varied trends: Japan experienced a 3.4% decrease in crude steel production in August, totaling 6.64 million tons year-on-year, whereas India's production increased by 14.2% compared to the previous year.