Steel Advances on Signs of Stronger Demand

2026-07-08 06:56 By Jam Kaimo Samonte 1 min. read

Steel rebar futures climbed toward CNY 3,080 per ton, rebounding from eight-month lows as improving property demand in top consumer China lifted the outlook for steel consumption.

Industry data showed that transactions of newly built commercial homes across 10 major Chinese cities increased 19.2% year-on-year in the week ended July 5.

China’s warehousing index also returned to expansion territory in June, supported by stronger demand for bulk commodity storage as infrastructure projects gathered pace nationwide.

On the supply side, a planned strike by BHP workers at the Port Hedland iron ore terminal in Western Australia raised the risk of disruptions to iron ore shipments, a key raw material for steel production.

Meanwhile, state-backed China Mineral Resources Group Ltd. recently broadened restrictions on Australian miner Fortescue Ltd., adding further pressure to iron ore supply.



News Stream
Steel Advances on Signs of Stronger Demand
Steel rebar futures climbed toward CNY 3,080 per ton, rebounding from eight-month lows as improving property demand in top consumer China lifted the outlook for steel consumption. Industry data showed that transactions of newly built commercial homes across 10 major Chinese cities increased 19.2% year-on-year in the week ended July 5. China’s warehousing index also returned to expansion territory in June, supported by stronger demand for bulk commodity storage as infrastructure projects gathered pace nationwide. On the supply side, a planned strike by BHP workers at the Port Hedland iron ore terminal in Western Australia raised the risk of disruptions to iron ore shipments, a key raw material for steel production. Meanwhile, state-backed China Mineral Resources Group Ltd. recently broadened restrictions on Australian miner Fortescue Ltd., adding further pressure to iron ore supply.
2026-07-08
Steel Extends Decline Toward 8-Month Low
Steel rebar futures held below CNY 3,060 per ton, staying close to their lowest levels in eight months as tighter European Union restrictions on steel imports darkened the demand outlook. The European Commission rolled out a revised safeguard mechanism that sharply curbs duty-free steel imports to shield the bloc’s steel industry and improve capacity utilization. Effective July 1, the EU reduced its annual tariff-free import quota by 47% to 18.3 million metric tons and imposed a 50% tariff on imports exceeding the quota across 26 steel product categories. Prices also remained under pressure from sluggish demand in top consumer China, where Zenith Steel lowered its early-July rebar prices, signaling weaker consumption as the prolonged downturn in the property market continued to weigh on construction activity.
2026-07-01
Steel Drops to 4-Month Low
Steel rebar futures fell below CNY 3,060 per ton, reaching their lowest level in four months as narrowing profit margins for steel mills and seasonal demand weakness weighed on prices. Industry data showed profitability among Chinese steel mills declined to about 51% in the latest week, down 4.8 percentage points from the previous week and 8.2 percentage points from a year earlier. The margin squeeze followed a fatal coal-mining accident in Shanxi last month, which drove up coke prices and encouraged mills to use more medium-to-high-grade iron ore to improve efficiency. Meanwhile, crude steel production in the world's largest producer continued to weaken amid the prolonged downturn in the property sector, with May output falling 2.7% year-on-year to 84.35 million tons.
2026-06-26