China’s weekly steel rebar output hit lowest in seven year amid sector-wide production cut
COMMODITIES DATA
China’s weekly steel rebar output hit lowest in seven year amid sector-wide production cut
COMMODITIES DATA

China’s weekly steel rebar output hit lowest in seven year amid sector-wide production cut

 

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China’s output of steel rebar, used in construction, has been slumping since late June, and weekly steel rebar output of 137 sample companies hit 2.3 million tonnes last week, the lowest level in nearly seven years, according to consultancy Mysteel.

The decline comes as more than 90% of major steelmakers in China are currently make losses due to sluggish steel demand and falling prices, with the losses expanding from the previous month, said Mysteel.

It’s currently a light season for steel consumption and even if infrastructure and real estate construction picks up, the room for improvement of steel rebar demand from downstream industries will be very limited given that high-temperature and rainy weather will continue to bring disruptions, said Mysteel in a note.

Recent comments from executives of China Baowu Steel Group, the world’s largest steelmaker, indicated that the sector will continue to face great challenges in July and August, said Mysteel.

Steel rebar demand is unlikely to show notable improvement in one-two months, it’s widely expected that most firms in the steel sector will cut production and supply accordingly and steel output is unlikely to show evident pickup in the near term, it said.