Steel Extends Fall on Weak China Output

Steel rebar futures fell below CNY 3,140 on Tuesday, touching a one-month low as extreme weather weighed on construction demand in China. The country’s crude steel output slipped to a seven-month low of 79.66 million tons in July, down 4% from June. China’s annual steel production has remained anchored near 1 billion tons over the past five years, and 2025 is shaping up similarly. Efforts by Beijing to curb overcapacity also contributed to reduced output, though these measures have helped lift profitability, with steel mill margins turning positive again. Prices also faced downward pressure after the Trump administration expanded its 50% tariff on steel and aluminum imports to cover hundreds of additional products, effective August 18. President Trump added that further tariff measures on steel and semiconductor chips will be announced in the coming weeks.