Steel Firms Up on Improving Margins

2026-10-12 07:13 By Jam Kaimo Samonte 1 min. read

Steel rebar futures traded near CNY 3,100 per ton, finding support as falling spot coke prices helped reduce steelmakers’ losses, improving the sector’s outlook and potentially easing pressure to cut production.

Meanwhile, China intensified efforts to support its economy amid weak consumption and investment, allocating CNY 550 billion ($82 billion) in unused government debt quotas to strengthen local government finances and expand infrastructure spending.

However, the steel industry continued to face subdued demand amid a prolonged property market downturn and sluggish construction activity.

Recent data showed that only 6.9% of Chinese steelmakers were profitable at the end of September, highlighting persistent challenges across the sector.

Steel producers remain under pressure to curb output as shrinking profit margins and uncertain demand continue to weigh on prices.



News Stream
Steel Firms Up on Improving Margins
Steel rebar futures traded near CNY 3,100 per ton, finding support as falling spot coke prices helped reduce steelmakers’ losses, improving the sector’s outlook and potentially easing pressure to cut production. Meanwhile, China intensified efforts to support its economy amid weak consumption and investment, allocating CNY 550 billion ($82 billion) in unused government debt quotas to strengthen local government finances and expand infrastructure spending. However, the steel industry continued to face subdued demand amid a prolonged property market downturn and sluggish construction activity. Recent data showed that only 6.9% of Chinese steelmakers were profitable at the end of September, highlighting persistent challenges across the sector. Steel producers remain under pressure to curb output as shrinking profit margins and uncertain demand continue to weigh on prices.
2026-10-12
Steel Drops to 4-Week Low
Steel rebar futures slipped below CNY 3,090 per ton, reaching their lowest level in four weeks as Chinese markets reopened following a week-long holiday, with the industry continuing to grapple with deteriorating steel margins. Industry data showed that only 6.9% of Chinese steelmakers were profitable by the end of September, while average daily hot metal production declined to a six-month low of 2.34 million tons. Reports also indicated that some Chinese steelmakers had begun or were planning equipment maintenance as mounting losses continued to pressure operations. In addition, China’s steel industry faced persistently weak demand amid a prolonged property downturn and subdued construction activity. Meanwhile, data from the World Steel Association showed that global crude steel production declined 1.2% year-on-year to 144.2 million tons in August.
2026-10-08
Steel Rises Amid Falling Global Output
Steel rebar futures climbed to around CNY 3,109 per ton, reaching a one-week high after World Steel Association data showed global crude steel production fell 1.2% year-on-year to 144.2 million tons in August. On a monthly basis, global crude steel output also declined 3.3% from the 149.2 million tons produced in July, with China’s 2.3 million-ton month-on-month drop accounting for nearly half of the global decrease. Still, China remains the world’s largest steel producer, representing 51.7% of global output. Meanwhile, the Chinese steel industry continued to face weak demand and deteriorating mill profitability. The prolonged property downturn remained a major drag on rebar consumption, with new construction activity and demand from developers staying subdued. Chinese markets will be closed from October 1 to 7 for the weeklong National Day holiday.
2026-10-01