FX.co ★ Steel Eases as China Curbs Output

Steel rebar futures slipped toward CNY 3,060 per ton, paring gains from the previous session after Chinese authorities ordered mills in northern China to temporarily cut production to curb pollution during the annual meetings of the National People’s Congress. Under the so‑called “blue skies” campaign, mills were instructed to reduce blast furnace output by 30% for one week starting March 4, in an effort to limit emissions in Beijing during the high-profile political gatherings.

At the same time, investors continued to assess demand conditions in top consumer China, where economic activity has remained subdued following the Lunar New Year holiday. Analysts anticipate that steel consumption will soften in the first half of the year, weighed down by persistent weakness in the property sector and cautious industrial activity.

Meanwhile, the industry is also watching for potential trade ramifications from the US Supreme Court’s recent ruling on tariffs, which could trigger additional protectionist measures.