Steel Drops to Two-Month Low

2026-06-17 07:11 By Jam Kaimo Samonte 1 min. read

Steel rebar futures declined to around CNY 3,120 per ton, reaching their lowest level in two months as disappointing economic data from China weighed on demand expectations.

Crude steel production in the world's largest producer continued to weaken amid a prolonged downturn in the property sector, with May output falling 2.7% year-on-year to 84.35 million tons.

Broader economic indicators also pointed to slowing momentum, with fixed-asset investment and consumer spending retreating to levels last seen during the pandemic period.

Meanwhile, earlier data showed China's steel exports rose 8.8% in May from the previous month, supported by subdued domestic demand and stronger profit margins for overseas shipments.

However, cumulative steel exports in the first five months of the year were still down 8.1% from a year earlier, reflecting rising trade barriers in several major export markets.



News Stream
Steel Drops to Two-Month Low
Steel rebar futures declined to around CNY 3,120 per ton, reaching their lowest level in two months as disappointing economic data from China weighed on demand expectations. Crude steel production in the world's largest producer continued to weaken amid a prolonged downturn in the property sector, with May output falling 2.7% year-on-year to 84.35 million tons. Broader economic indicators also pointed to slowing momentum, with fixed-asset investment and consumer spending retreating to levels last seen during the pandemic period. Meanwhile, earlier data showed China's steel exports rose 8.8% in May from the previous month, supported by subdued domestic demand and stronger profit margins for overseas shipments. However, cumulative steel exports in the first five months of the year were still down 8.1% from a year earlier, reflecting rising trade barriers in several major export markets.
2026-06-17
Steel Remains Weak Despite Strong China Exports
Steel rebar futures fell to around CNY 3,130 per ton, hitting near two-month lows even after recent data showed China’s steel exports rose 8.8% in May from the previous month, supported by weak domestic demand and improved margins for overseas shipments. China exported 10.34 million metric tons of steel used in construction and manufacturing, the highest level since December. However, cumulative steel exports for the first five months of the year were down 8.1% from a year earlier amid growing trade protectionism from key overseas markets. Meanwhile, China’s steel market has entered its seasonally weak demand period earlier than usual this year due to persistent rainfall and the early arrival of summer heat. Construction activity typically slows during periods of heavy rain and high temperatures, weighing on demand for steel products.
2026-06-09
Steel Pressured by Demand Concerns
Steel rebar futures fell toward CNY 3,140 per ton, hitting six-week lows as China’s steel market entered its seasonally weak demand period earlier than usual this year due to persistent rainfall and the early arrival of summer heat. Construction activity typically slows during periods of heavy rain and high temperatures, reducing demand for steel products. Chinese steelmakers have also come under pressure from tighter profit margins, limiting their willingness to accumulate raw material inventories or ramp up production. Margins have been further squeezed by rising coal prices following the recent mine accident in China’s Shanxi Province. Meanwhile, recent industry data showed domestic crude steel production fell 2.8% year-on-year to 83.6 million tons in April, marking the lowest April output level since 2018.
2026-06-05