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.
UCapital Asset Management LLP or group companies may have commercial relationships with the companies mentioned. This content is not financial advice.
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