Steel Rebar Extends Fall on Weak China Data

Steel rebar futures fell toward CNY 3,170 per tonne on Friday, their lowest in two weeks, as the latest batch of economic data in top consumer China disappointed markets. China’s industrial production grew 5.7% in July, slowing from June’s 6.8% gain and missing forecasts of 5.9%. Retail sales also rose 3.7%, down from 4.8% in June and well below the 4.6% consensus. Additionally, new home prices fell 0.3% from the prior month, indicating weak property demand despite more local government incentives for homebuying. Meanwhile, China’s crude steel output dropped to a seven-month low in July amid efforts to curb overcapacity, while extreme heat and heavy rainfall disrupted outdoor construction. This has improved profitability and pushed steel mill margins back into positive territory.