FX.co ★ Steel Hits 2-½-Month Highs

Steel rebar futures climbed above CNY 3,140 per ton, their highest level since mid-June, as investors priced in a seasonal rebound in demand ahead of the traditional September peak construction period. Construction activity in China, the world’s largest consumer, typically accelerates before winter, bolstering the demand outlook for steel and related raw materials.

Supporting this trend, China’s National Development and Reform Commission has reportedly convened meetings in recent weeks, urging local governments to speed up work on major infrastructure projects.

At the same time, China’s non-manufacturing PMI—which includes both services and construction—held at 49.0 in August, unchanged from July and still at its lowest level since December 2022, signaling continued weakness in the broader non-manufacturing sector.

In addition, sweeping regulatory changes unveiled last week for China’s crisis-stricken property sector triggered sharp declines in the share prices of smaller developers, as markets braced for further consolidation across the industry.