Steel falls on weak China demand

Steel rebar futures dropped to around CNY 3,060 per ton on Thursday, touching a near one-week low amid ongoing demand worries in top consumer China.

Data showed that manufacturing and infrastructure investment continued to contract in August, while end-use steel demand slumped in the third quarter, led by the struggling property sector.

Crude steel output also declined for a third straight month as mills in Tangshan, China’s key steelmaking hub, scaled back operations during the military parade.

On the trade front, steel product imports rose 11.1% to 0.50 Mt, while exports slipped 3.4% to 9.51 Mt.

At the same time, inventories of major steel products have been rising since mid-August, highlighting weak consumption and persistent headwinds from the real estate downturn.