19.08.202506:53:47UTC+00Steel Extends Fall on Weak China Output

Steel rebar futures dropped below CNY 3,140 on Tuesday, reaching a one-month low as severe weather conditions impacted construction demand in China. The country witnessed a decline in crude steel output, hitting a seven-month low of 79.66 million tons in July, marking a 4% decrease compared to June. Over the past five years, China's annual steel production has consistently hovered around 1 billion tons, with 2025 expected to follow a similar trend. Efforts by the Chinese government to tackle overcapacity have also played a role in reducing output, although these initiatives have aided in improving profitability, with steel mill margins returning to positive territory. Additionally, prices came under pressure following the Trump administration's decision to expand a 50% tariff on steel and aluminum imports, extending it to include hundreds of additional products from August 18 onward. President Trump further announced that more tariff measures affecting steel and semiconductor chips are set to be disclosed in the coming weeks.