FX.co ★ Steel Holds Near 1-Month High

Steel rebar futures remained above CNY 3,060 per ton, trading near one-month highs amid expectations of stronger demand in top consumer China ahead of the September peak construction season and following the announcement of new policy support from Beijing. Markets are positioning for a pickup in consumption as construction activity typically accelerates before winter sets in.

Vice Finance Minister Liao Min stated that China will roll out a new package of measures aimed at expanding domestic demand and supporting economic growth. In parallel, the National Development and Reform Commission reportedly held a series of meetings last week, urging local governments to speed up the implementation and construction of major projects.

Despite these efforts, China’s property sector has remained mired in a prolonged downturn for five years. Real estate prices continue to fall, financially strained households are being compelled to sell properties, and heavily indebted developers are under increasing pressure after building up large liabilities through speculative projects.