24.08.202605:00:03UTC+00Steel Drops to 4-Week Low

Steel rebar futures declined to around CNY 3,070, pulling back from recent multi-week highs to touch their lowest level in four weeks, as sluggish construction activity and elevated inventories continued to dampen sentiment. China’s property sector remained under strain, with new home prices posting a year-on-year drop in July, while rebar stockpiles stayed above their levels of a year earlier. Weak mill margins further curbed buying interest, with only about one-third of steelmakers reported to be profitable at the end of July. Still, rising blast-furnace operating rates and expectations of seasonal restocking ahead of the traditional September peak construction period provided some support. In addition, Beijing signaled further steps to stimulate domestic demand, and the NDRC urged local governments to speed up major projects, bolstering hopes for a gradual recovery in steel consumption.