Steel Rebounds as Risk Appetite Improves

Steel rebar futures rose to around CNY 3,060 per tonne in mid-September, recovering from a two-month low as improved global risk sentiment lifted commodity markets. The move followed signs of a cooling US labor market and mild inflation, which strengthened expectations for deeper Federal Reserve rate cuts and supported risk assets. Still, demand concerns in China continued to weigh, with the property sector and construction activity under sustained pressure. Rising iron ore costs, driven by supply risks at Guinea’s Simandou mine and seasonal restocking demand in China, further squeezed steelmakers’ margins. On the trade side, China’s steel product imports climbed 11.1% to 0.50 million tonnes, while exports fell 3.4% to 9.51 million tonnes. Meanwhile, inventories of major steel products have been trending higher since mid-August, highlighting sluggish consumption tied to the prolonged property downturn.