FX.co ★ Steel Hits Near 1-Month Low

Steel rebar futures fell below CNY 3,160 per ton, trading near their lowest level in almost a month as sluggish demand continued to pressure prices. Profit margins for Chinese steel producers remain squeezed amid ongoing weakness in the country’s infrastructure and property construction sectors. External demand has also softened, with foreign buyers showing limited interest in Chinese steel at current elevated price levels.

China’s crude steel output declined 2.8% year-on-year to 86.63 million tons in April, the lowest April figure since 2018. At the same time, the latest monthly industry report from Mysteel suggests that long steel production is set to rise, as improved profitability prompts domestic mills to ramp up output. However, the anticipated increase in supply may add further downward pressure on prices later this month if end-user demand continues to weaken.