FX.co ★ Steel Advances on Signs of Stronger Demand

Steel rebar futures rose toward CNY 3,080 per ton, rebounding from eight‑month lows as signs of recovering property demand in China, the world’s largest consumer, brightened the outlook for steel usage. Industry data showed that transactions of newly built commercial housing in 10 major Chinese cities increased 19.2% year-on-year in the week ended July 5.

Further supporting the market, China’s warehousing index returned to expansion in June, driven by stronger demand for bulk commodity storage amid an acceleration in infrastructure projects nationwide.

On the supply side, a planned strike by BHP workers at the Port Hedland iron ore terminal in Western Australia raised the risk of disruptions to iron ore shipments, a critical input for steelmaking. At the same time, state-backed China Mineral Resources Group Ltd. recently expanded its restrictions on Australian miner Fortescue Ltd., adding additional pressure on iron ore supply.