Steel Drops on Demand Weakness

2026-07-20 06:38 By Jam Kaimo Samonte 1 min. read

Steel rebar futures fell below CNY 3,100 per ton, retreating from one-month highs as seasonal weakness in Chinese demand and softer mill profitability weighed on sentiment.

Persistent rainfall across southern China and high temperatures in the north continued to hamper construction activity, reducing steel consumption.

Industry data also showed blast furnace capacity utilization at surveyed steel mills slipped below 90% last week, while mill profitability eased to around 37%.

Meanwhile, recent Chinese trade data showed steel exports declined 5.6% year-on-year to 57.87 million tons in the first half of the year.

In June alone, exports totaled 10.32 million tons, down 0.2% from the previous month but 6.6% higher than a year earlier.

Additionally, China's steel imports reached 2.69 million tons in January-June, marking an 11.3% decline from the same period last year.



News Stream
Steel Drops on Demand Weakness
Steel rebar futures fell below CNY 3,100 per ton, retreating from one-month highs as seasonal weakness in Chinese demand and softer mill profitability weighed on sentiment. Persistent rainfall across southern China and high temperatures in the north continued to hamper construction activity, reducing steel consumption. Industry data also showed blast furnace capacity utilization at surveyed steel mills slipped below 90% last week, while mill profitability eased to around 37%. Meanwhile, recent Chinese trade data showed steel exports declined 5.6% year-on-year to 57.87 million tons in the first half of the year. In June alone, exports totaled 10.32 million tons, down 0.2% from the previous month but 6.6% higher than a year earlier. Additionally, China's steel imports reached 2.69 million tons in January-June, marking an 11.3% decline from the same period last year.
2026-07-20
Steel Rises Despite Weak Chinese Trade Figures
Steel rebar futures climbed above CNY 3,120 per ton, reaching a one-month high even as the latest Chinese trade data showed that steel exports fell 5.6% year-on-year to 57.87 million tons in the first half of the year. In June alone, exports totaled 10.32 million tons, down 0.2% from the previous month but up 6.6% compared with a year earlier. Meanwhile, China’s steel imports reached 2.69 million tons in January-June, marking an 11.3% decline from the same period last year. At the same time, Chinese steel mills reported widening losses as elevated coking coal costs and persistently weak finished steel prices continued to squeeze profit margins. Planned maintenance work and production cutbacks are also expected to curb near-term steel output.
2026-07-15
Steel Drops on Falling Mill Profits
Steel rebar futures fell back below CNY 3,060 per ton, retreating toward multi-month lows as widening losses at Chinese steel mills reinforced expectations of further production cuts. Steelmakers reported weaker profitability last week as elevated coking coal costs and persistently weak finished steel prices continued to squeeze margins. Planned maintenance and output reductions are also expected to weigh on near-term steel production. Separately, China launched a new mining investment vehicle, Guangyan International Investment Co., to strengthen the country's control over overseas mineral resources. The country is also seeking to standardize its framework for international metals deals to improve regulatory oversight and encourage mining companies to manage risks by partnering with other firms.
2026-07-13