Steel rebar futures fall toward CNY 3,010 on weak China demand

Steel rebar futures fell toward CNY 3,010 per ton, retreating from three-week highs as signs of persistently weak demand in top consumer China weighed on the market.

Chinese steelmakers continued to struggle with deteriorating margins and a prolonged property sector downturn, limiting demand for steel products.

Industry data showed that China’s daily crude steel output fell 11% in July from the previous month to 2.48 million tons, while daily hot metal production declined 2.2% to 2.2 million tons.

China’s property market has remained in a prolonged slump for five years, with real estate values continuing to decline, financially strained households being forced to sell properties, and heavily indebted developers facing mounting pressure after accumulating massive debt on speculative projects.

Export opportunities for Chinese steel mills were also constrained by growing protectionist measures from foreign governments.