Steel rebar futures in China were near CNY 2,960 per tonne, remaining in a narrow range since dropping to a nine-month low of CNY 2,920 on June 13th as lower ferrous metal demand and increasing protectionism against Chinese steel outweighed the impact of lower supply. Construction growth in China measured by the NBS PMI fell to a four-month low in May as tariff threats from the US limited consumption and an oversupply of housing stock pressured the need for new residential projects, magnifying the impact of lower seasonal activity in the summer.
Additionally, the US doubled tariffs on steel imports to 50%, pressuring import demand and raising the availability of ferrous metal among major Asian hubs. This drove Beijing to signal it will cut capacity for steel furnaces and mills this year, with Baosteel stating it expects production to fall my 50 million tonnes.
