FX.co ★ Steel Rebounds as Global Output Stabilizes

Steel rebar futures rose above CNY 3,200 per ton, rebounding from three-week lows as the pace of global steel production declines slowed in April compared with March, and the contraction in China’s steel output also moderated. These data points provided some support to market sentiment, although overall demand remained uneven. Chinese steel margins are still under pressure amid ongoing weakness in infrastructure and property construction. Overseas demand for Chinese steel has also cooled, with foreign buyers showing limited interest at current elevated price levels. At the same time, Mysteel’s latest monthly industry report suggests that long steel production is set to increase, as improved profitability encourages domestic mills to ramp up output. However, the potential rise in supply could introduce renewed downward pressure on prices later this month if end-user demand continues to soften.