Steel Declines Toward 3-Month Low
Steel rebar prices have dipped below CNY 3,020 per tonne, hitting their lowest point in three months. This slump is largely due to reduced restocking by manufacturers, prompting markets to turn their attention towards the potential decline in demand for ferrous metals in China. Persistent concerns about weak manufacturing demand, coupled with ongoing issues in the property sector, have continued to put pressure on industrial metals and construction inputs. This scenario is underscored by the first contraction in the official NBS Construction PMI since January.
The decline in prices has persisted despite Beijing's efforts to limit output. Steel and iron ore have become focal points in the anti-involution campaign, as the ongoing property crisis has weighed on ferrous metal demand. This has led mills to aggressively compete for the limited market share, further driving prices down and boosting exports. Additionally, the China Mineral Resources Group has advised steel producers to suspend orders of iron from BHP's Jimblebar blend due to faltering long-term contracts, which may result in higher input costs.
Download NOW!
No comments:
Post a Comment