Steel Drops on Falling Mill Profits

Steel rebar futures fell back below CNY 3,060 per ton, retreating toward multi-month lows as widening losses at Chinese steel mills reinforced expectations of further production cuts. Steelmakers reported weaker profitability last week as elevated coking coal costs and persistently weak finished steel prices continued to squeeze margins. Planned maintenance and output reductions are also expected to weigh on near-term steel production. Separately, China launched a new mining investment vehicle, Guangyan International Investment Co., to strengthen the country’s control over overseas mineral resources. The country is also seeking to standardize its framework for international metals deals to improve regulatory oversight and encourage mining companies to manage risks by partnering with other firms.

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