Steel Pulls Back on China Production Curbs

Steel rebar futures dropped below CNY 3,040 per ton, retreating from one-week highs as environmental restrictions forced production curbs across northern China. Authorities in major steelmaking centers, including Tangshan and Handan in Hebei province, introduced emergency response measures effective Monday in anticipation of severe air pollution. The restrictions added further pressure to metal prices, which were already facing seasonal weakness in demand. Industry data showed that average hot metal production among Chinese steelmakers declined for a fourth consecutive week, falling 0.5% from the previous week to 2.31 million tons as of November 5. Over the longer-term, the World Steel Association now expects global steel demand to contract by 0.1% this year, reversing its earlier forecast of 0.3% growth. The report also projected that China's steel consumption would decline by 2% in 2026 as the downturn in the property sector continues to persist longer than initially anticipated.