24.07.202609:53:33UTC+00Steel Holds Decline from 1-Month High

Steel rebar futures in China traded near CNY 3,060 per tonne, extending their retreat from the one-month high of CNY 3,130 reached on July 16th, amid subdued domestic demand. A persistent housing oversupply, which has driven the country’s protracted property downturn, continued to constrain investment in new construction. New home prices fell further in June, while construction starts by floor area declined 23.4% year-on-year in the first half of the year.

Construction accounts for roughly one-third of China’s steel consumption and represents the primary source of rebar demand. At the same time, manufacturing growth remained weak, as tepid consumer spending coincided with protectionist measures abroad that curtailed foreign orders for Chinese goods, particularly in light of slowing momentum in auto production growth.

As a result, domestic steel output reached 500 million tonnes in the first half of the year, about 3% below the level recorded in 2025. Even so, robust infrastructure spending from Beijing—particularly on power plants, grid upgrades, and electricity storage projects—helped underpin overall steel consumption.