27.08.202506:46:41UTC+00Steel Hits 6-Week Low

Steel rebar futures dropped to approximately CNY 3,110 per tonne on Wednesday, reaching a six-week low as China's manufacturing and infrastructure investment growth decelerated, negatively impacting the demand for construction steel. Markets reevaluated the extent of output reductions and the level of fiscal support provided by the government. Although Beijing expressed its intention to implement expansionary fiscal and monetary policies to bolster spending, it stopped short of introducing large-scale stimulus measures. Additionally, satellite data revealed that steel mills in China's main production regions continued to operate with substantial capacity midway through the third quarter, despite previous indications of a policy overhaul from Beijing aimed at addressing overcapacity and the threat of deflation. In Tangshan, production was curtailed by 30% rather than being halted completely, in preparation for Beijing's upcoming military parade, which traditionally requires clear skies.