Steel Drops to 4-Week Low

Steel rebar futures slipped below CNY 3,090 per ton, reaching their lowest level in four weeks as Chinese markets reopened following a week-long holiday, with the industry continuing to grapple with deteriorating steel margins. Industry data showed that only 6.9% of Chinese steelmakers were profitable by the end of September, while average daily hot metal production declined to a six-month low of 2.34 million tons. Reports also indicated that some Chinese steelmakers had begun or were planning equipment maintenance as mounting losses continued to pressure operations. In addition, China’s steel industry faced persistently weak demand amid a prolonged property downturn and subdued construction activity. Meanwhile, data from the World Steel Association showed that global crude steel production declined 1.2% year-on-year to 144.2 million tons in August.