2025.10.2310:22:22UTC+00Steel Rebounds from 3-Month Low

Steel rebar futures in China witnessed a recovery, rising to CNY 3,060 per tonne from a three-month low of CNY 3,000 as of October 15th. This uptick reflected Beijing's ongoing efforts to address overcapacity in the ferrous metals sector, which helped counterbalance concerns about flagging demand. Production figures underscored this trend, with Chinese mills outputting 73.5 million tons of steel in September—marking a 4.6% year-on-year decline to the lowest level observed in nearly two years. This reduction aligns with China's anti-involution campaign, a strategic initiative to reverse the years-long expansion in manufacturing capacity and mitigate deflationary challenges impacting industries like construction, specifically rebar, amid an ongoing slowdown and the wider property crisis. The government's recent policy shift, emphasizing growth in services and technology over goods-producing industries, further underscores expectations of reduced furnace capacity. Concurrently, resources giant BHP indicated ongoing discussions with Chinese authorities concerning iron ore contracts, alleviating fears that steel mills might be compelled to seek alternative raw material sources.