Steel rebar futures slipped toward CNY 3,060 per ton, reaching a three-week low as worsening profitability across China’s steel sector weighed on sentiment. Industry data showed that only around 8% of Chinese mills were profitable, down from roughly 30% a week earlier and 60% a year ago. The reading was also the weakest since September 2024, with persistently elevated coke prices continuing to erode margins. Meanwhile, China’s leading industry association reportedly called on steelmakers last month to voluntarily curb output, with the aim of reducing inventories and restoring profitability after a challenging first half. However, analysts see limited willingness among mills to implement substantial production cuts, particularly as steel demand shows signs of stabilizing. Despite the weak fundamentals, investors expect consumption to receive a seasonal boost during September’s peak construction period.