Steel Nears 2-Week Low

Steel rebar futures in China dropped below CNY 3,100 per ton, approaching two-week lows as persistent weakness in demand continued to pressure the market, while disappointing economic data from top consumer China further clouded the demand outlook. Industrial profits in China slowed in August as subdued domestic demand offset strength in high-tech and AI-related manufacturing. Meanwhile, profitability at Chinese steel mills declined again last week, while average daily hot metal production also fell. The China Iron and Steel Association has called on mills to reduce output and draw down inventories to protect margins and curb excess supply. Additionally, data from the World Steel Association showed global crude steel production fell 1.2% to 144.2 million tons in August compared with the same month a year earlier.