FX.co ★ Steel Drops on Deteriorating Demand Outlook

Steel rebar futures fell toward CNY 3,080 per ton, nearing a two-month low after the World Steel Association revised its outlook and now expects global steel demand to contract by 0.1% this year, compared with its April forecast of 0.3% growth. The association cited weaker demand in China and disruptions linked to the Middle East conflict, noting that the anticipated recovery in steel consumption has been slower and more gradual than previously assumed. It also cut its 2027 global demand growth forecast to 1.7% from 2.2%.

According to the report, China’s steel demand is projected to fall by 2% this year as the property sector downturn lasts longer than expected. The outlook for Europe has also deteriorated, with the recovery in construction proving slower and more uneven than earlier forecasts suggested. By contrast, India remains the fastest-growing major steel market in the world, with demand expected to increase by 7.9% in 2026 and 8% in 2027.