Steel Firms Up on Output Curb Pledge

Steel rebar futures held above CNY 3,120 per ton, remaining near two-month highs as several Chinese steelmakers pledged to curb production and reduce steel inventories amid sharply declining margins. The state-backed China Iron and Steel Association, together with 45 major steelmakers including China Baowu Steel Group, urged domestic producers across the industry to firmly implement output controls to bring down elevated inventory levels. Profitability at Chinese steelmakers deteriorated sharply, pressured by high production costs and weak steel demand. As a result, some producers have reduced operations and scheduled maintenance. Recent data also showed that China’s new home prices continued to fall in August, underscoring the persistent drag from the country’s prolonged property downturn.