Steel pressured by weak demand

Steel rebar futures held below CNY 3,030 per ton on Monday, hovering near their lowest level in over three months as sluggish demand and narrowing margins weighed on sentiment.

Data showed China, the world’s top steel producer, churned out 73.49 million metric tons of crude steel in September, the lowest in 21 months, down 4.6% from a year earlier and 5% from August.

Typically, China’s steel consumption peaks in September amid strong construction activity, but powerful typhoons across coastal regions disrupted projects and dented demand.

Meanwhile, industry figures indicated only about 57% of Chinese steel mills were profitable by the end of September, down from 64% a month earlier, as rising raw material costs, particularly iron ore, continued to squeeze margins.