FX.co ★ Steel Firms Up on Output Curb Pledge

Steel rebar futures remained above CNY 3,120 per ton, hovering near a two-month high, as several Chinese steelmakers pledged to curb output and reduce inventories amid sharply shrinking profit margins. The state-backed China Iron and Steel Association, together with 45 major producers including China Baowu Steel Group, called on steelmakers nationwide to strictly enforce production controls to lower elevated stockpiles. Profitability in the sector has deteriorated markedly, squeezed by high production costs and subdued steel demand. In response, some mills have scaled back operations and brought forward maintenance. Recent data also showed that China’s new home prices continued to decline in August, highlighting the ongoing drag from the country’s protracted property downturn.