28.08.202506:40:05UTC+00Steel Rises as China Curbs Production

Steel rebar futures rose to over CNY 3,110 per tonne on Thursday, rebounding slightly after hitting a six-week low. This uptick came in response to reports that China plans to limit steel production between 2025 and 2026 in an effort to address overcapacity. As the leading global steel producer, China committed in March to reorganize its extensive industry; however, details regarding the scale and timeline of the reductions are yet to be disclosed. According to official data, crude steel production decreased by 3.1% in the first seven months of the year, totaling 594.47 million tonnes. On the demand front, the slowdown in China's manufacturing and infrastructure investment has continued to pressure construction steel consumption. Meanwhile, markets are reevaluating the scope of government intervention, as Beijing has pledged to implement expansionary fiscal and monetary measures, though it has not introduced any large-scale stimulus packages.