Steel Declines to Near Three-Month Low

Steel rebar futures fell toward CNY 3,000 per ton, hitting near three-month lows as weak profit margins, sluggish downstream demand and elevated inventory levels continued to pressure the market.

Environmental restrictions across several northern Chinese provinces also weighed on hot metal production, although output is expected to rebound once the restrictions are lifted.

Meanwhile, the World Steel Association recently downgraded its global steel demand outlook, projecting a 0.1% contraction this year, reversing its earlier forecast of 0.3% growth made in April.

According to the report, Chinese steel consumption is expected to fall by 2% this year as the property sector downturn proves more prolonged than previously anticipated.

This story was originally published by Hellenic Shipping News. Read the full story at Hellenic Shipping News →