Steel Rebounds from Multi-Month Lows

Steel rebar futures climbed to around CNY 3,040 per ton, rebounding from near three-month lows as improving profit margins strengthened the market outlook. A broader risk-on sentiment across Chinese markets, driven by gains in equities, also provided support to steel prices. However, the World Steel Association recently revised its global steel demand forecast downward, now anticipating a 0.1% contraction this year, compared with its earlier projection of 0.3% growth made in April. The report indicated that China's steel consumption is expected to decline by 2% in 2026 as the downturn in the property sector persists longer than previously expected. In contrast, India continues to stand out as the fastest-growing major steel market, with demand projected to expand by 7.9% in 2026 and a further 8% in 2027.