Steel climbs amid rising output

Steel rebar futures advanced toward CNY 3,020 per ton on Monday, hitting a more than three-week high as Chinese steel production picked up ahead of the National Day holidays.

Industry data showed blast furnace operating rates rose 0.2 percentage points to 90.4% last week, supported by resumed activity in Northern China and firmer construction demand.

Hot metal output, a key gauge of near-term iron ore consumption, also edged higher to 2.41 million tons per day.

Still, China’s crude steel production declined for the third straight month in August, as mills in Tangshan, the country’s top steelmaking hub, scaled back operations during the military parade.

Market participants continue to monitor property sector demand and infrastructure activity, which remain critical drivers of steel consumption in the months ahead.