FX.co ★ Steel Drops on Falling Mill Profits

Steel rebar futures slipped back below CNY 3,060 per ton, moving toward multi-month lows as deepening losses at Chinese steel mills strengthened expectations of further production cuts. Steelmakers’ profitability deteriorated last week, with high coking coal costs and persistently weak finished steel prices continuing to compress margins. Scheduled maintenance and deliberate output reductions are also expected to curb steel production in the near term.

In a separate development, China established a new mining investment vehicle, Guangyan International Investment Co., to tighten its control over overseas mineral resources. At the same time, authorities are working to standardize the framework for international metals transactions to enhance regulatory oversight and encourage mining companies to mitigate risks through partnerships with other firms.