FX.co ★ Steel Declines on Weak Construction Demand

Steel rebar futures declined to below CNY 3,070 per ton on Monday, offsetting the gains made last week, as the lackluster construction activity in China continues to dampen demand. Recent pressure on prices further intensified following the European Union's announcement to decrease tariff-free quotas on steel imports and to increase duties on excess imports from 25% to 50%. In parallel, China is implementing stricter regulations on new steel capacity to tackle persistent issues of oversupply and declining prices. Steel and iron ore remain central to Beijing's anti-involution efforts, as the ongoing property crisis affects ferrous metal consumption and exacerbates competition among mills for limited market share. Recent data indicates that Chinese exports and imports exceeded expectations in September, driven by solid global and domestic demand. Notably, steel exports surged by 10% to a four-month high of 10.47 million tons, challenging the forecast that increasing global protectionism would restrict shipments.