Latest news with #ChinaIronandSteelAssociation
Mint
28-05-2025
- Business
- Mint
China Steel Woes Deepen as Rebar Prices Fall to Eight-Year Low
Prices of a key Chinese steel product used in construction were at their lowest since 2017 as the world's biggest market for the metal grappled with a massive glut. Reinforcement bar — or rebar for short — is a benchmark for China's traditional steel markets because it's used to strengthen concrete in buildings and infrastructure. The eight-year low in Shanghai highlights the demand struggle facing steelmakers due to a prolonged downturn in the country's property sector. The China Iron and Steel Association reiterated at a conference this week that controlling capacity expansion is a focus and had earlier said that Beijing is 'actively deploying and promoting' a crude steel production mandate. Rebar prices have dropped 11% so far this year, while iron ore is down about 6%. The bigger drop in prices of domestic steel compared with raw materials suggested that 'consolidation and rationalization in China are needed to boost prices', analysts at Bloomberg Intelligence wrote in a note. For iron ore, prices might ease toward $90 a ton by October on seasonal softness and rising supply, 'though cost support and policy easing could limit downside.' The ongoing annual Singapore International Ferrous Week is marked by a guarded outlook. Eric Bretting, head of ferrous trading at Macquarie Group, said that despite expectations of China rolling out more stimulus to counteract tariff pressures, it's unlikely such measures will come. Rebar contracts in Shanghai traded at around 2,955 yuan as of 11:43 a.m. local time. Iron ore futures in Singapore dropped for a fifth day to $96 a ton. There's also some 'nervousness' around iron ore supply from non-traditional regions next year, according to Joel Parsons, portfolio manager at Drakewood Capital Management. 'Even if you exclude geopolitical risk, there is risk technically,' in terms of supply coming online later or slower than previously anticipated, he said. This article was generated from an automated news agency feed without modifications to text.
Mint
27-05-2025
- Business
- Mint
Iron Ore Retreats as Traders Stay Cautious on Demand Outlook
(Bloomberg) -- Iron ore extended its losing streak for a fourth day as traders remained cautious about demand and assessed moves to limit overcapacity in China's steel sector. The steel-making material dropped to a three-week low as industry players, gathered at the annual Singapore International Ferrous Week, weighed expectations for production cuts at Chinese mills. Meanwhile, daily ore flows from Brazil increased from the month before. China's steel industry needs to control capacity expansion to solve the ongoing supply-demand mismatch, Tang Zujun, vice president of the China Iron and Steel Association, said at the Singapore event on Tuesday. Another focus is consolidation in the domestic industry, as it's 'relatively scattered' with about 40% of capacity concentrated in the top ten companies, he added. The industry body said this month the government was 'actively deploying and promoting' its crude steel production mandate. China's steel market — the world's largest — has been grappling with a massive glut and weak profitability at mills. The immediate outlook on China's steel-consuming economy has 'improved' thanks to a detente in the trade war between the US and China, according to Vivek Dhar, an analyst at Commonwealth Bank of Australia. 'But it's hard to see the property or infrastructure sectors recovering meaningfully without policy support' in the form of economic stimulus, which he said is likely to come in the second half of the year. Iron ore futures in Singapore slipped 1.3% to $95.80 a ton as of 11:45 p.m. local time. Steel rebar contracts in Shanghai traded at the lowest since June 2017. More stories like this are available on
