Steel rebar futures hovered above CNY 2,970 per tonne on Tuesday, extending a sideways trend seen for over a week, even as fresh data showed China’s steel production fell 6.9% in May—the first year-on-year decline since Beijing pledged to tackle industry overcapacity in March. The weak output raised concerns about subdued demand for raw materials, keeping market sentiment cautious.
Traders also remained on edge ahead of the US Federal Reserve’s upcoming policy decision. While the Fed is widely expected to hold rates steady, bets on further cuts have eased amid ongoing trade uncertainty and inflation risks fueled by higher oil prices. Adding to the cautious mood, US President Donald Trump called for the full evacuation of Tehran amid continued Israeli airstrikes and departed the G7 summit in Canada early to monitor the escalating situation in the Middle East.
