Steel Hits 2-Month Low

Steel rebar futures fell toward CNY 3,020 per tonne in mid-September, hitting a two-month low amid signs of softening demand from top consumer China. The country’s property market remains under pressure, with steel mills squeezed as the construction season has yet to gain momentum. Rising iron ore costs, fueled by supply risks at Guinea’s Simandou mine and seasonal restocking demand in China, further eroded steel margins. On the trade front, China’s steel product imports rose 11.1% to 0.50 million tonnes, while exports slipped 3.4% to 9.51 million tonnes. At the same time, inventories of major steel products have been climbing since mid-August, underscoring sluggish consumption from the prolonged property downturn. The persistent stockpile overhang continues to drag on prices and may discourage mills from boosting production.