Steel Holds Decline on Shrinking Margins
Steel rebar futures in China held their recent decline to around CNY 3,100 per ton in early September, as rising raw material costs deepened losses at steel mills, overshadowing stronger steel exports. Industry data showed that the average cost of hot metal and steel billets at major mills in Tangshan rose sharply this week, pushing ...
Steel futures in China continued their downward trend, settling at approximately CNY 3,100 per ton in early September, as rising raw material costs intensified losses at steel mills, despite a surge in steel exports. Industry data revealed that the average expense for hot metal and steel billets at key mills in Tangshan surged significantly this week, leading to average losses surpassing CNY 100 per ton.
China's non-manufacturing Purchasing Managers' Index (PMI), encompassing services and construction, remained stagnant at 49.0, mirroring July's figure and marking its lowest level since December 2022. Simultaneously, China's overall steel exports increased by 7.8% week-over-week to 2.55 million tons during the week ending August 31, representing a third consecutive weekly rise and the highest level in almost eight weeks.
In August, steel prices experienced a sharp uptick as investors anticipated a rebound in demand due to seasonal factors prior to the September peak construction season.
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