FX.co ★ Steel Nears 2-Week Low

Steel rebar futures in China fell below CNY 3,100 per ton, nearing a two-week low, as ongoing demand weakness continued to weigh on prices. The outlook was further dampened by lackluster economic data from China, the world’s largest consumer of steel. Industrial profit growth slowed in August, with muted domestic demand offsetting gains in high-tech and AI-related manufacturing.

At the same time, profitability at Chinese steel mills deteriorated again last week, accompanied by a decline in average daily hot metal output. In response, the China Iron and Steel Association urged mills to cut production and draw down inventories in order to protect margins and rein in oversupply.

On the global front, figures from the World Steel Association showed that world crude steel production fell 1.2% year-on-year in August to 144.2 million tons, underscoring a broader slowdown in steel demand.