China steel rebar futures hold near CNY 3,100/ton on margin squeeze
Steel rebar futures in China held their early-September decline to around CNY 3,100 per ton. Rising hot metal and billet costs at Tangshan mills lifted average losses to more than CNY 100 per ton.
Steel rebar futures in China held their recent decline to around CNY 3,100 per ton in early September, as rising raw material costs deepened losses at steel mills, overshadowing stronger steel exports.
Industry data showed that the average cost of hot metal and steel billets at major mills in Tangshan rose sharply this week, pushing average losses to more than CNY 100 per ton.
China’s non-manufacturing PMI, which covers services and construction, also held steady at 49.0, matching July’s reading and remaining at its weakest level since December 2022.
Meanwhile, China’s total steel exports rose 7.8% week-on-week to 2.55 million tons in the week to August 31, marking a third consecutive weekly increase and the highest level in nearly eight weeks.
In August, steel prices rallied sharply as investors anticipated a recovery in demand due to seasonal factors ahead of the September peak construction season.