Steel Drops to 3-Week Low
Steel rebar futures slipped toward CNY 3,060 per ton, reaching a three-week low as worsening profitability across China’s steel sector weighed on sentiment. Industry data showed that only around 8% of Chinese mills were profitable, down from roughly 30% a week earlier and 60% a year ago. The reading was also the weakest since September ...
Steel rebar futures have slipped to a three-week low, falling towards CNY 3,060 per ton, due to declining profitability in China’s steel sector. Industry data indicates that only around 8% of Chinese mills are currently profitable, down significantly from 30% a week prior and 60% a year ago. This marks the weakest profitability since September 2024, as persistently high coke prices continue to squeeze margins.
The country’s leading industry association has reportedly urged steelmakers to voluntarily reduce output last month, aiming to cut inventories and restore profitability after a tough first half. However, analysts suggest that there is limited willingness among mills to implement large-scale production cuts, especially as steel demand appears to be stabilizing.
Despite these weak fundamentals, investors anticipate a seasonal boost in consumption during September’s peak construction period.
Written by urgent.news from Hellenic Shipping News's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.