Internationally Steel rebar futures dropped to a 23-month low of CNY 3,563 per tonne, amid signs of increasingly low demand for industrial and construction input materials.
Fresh data showed that shipments from the world’s two top exporters Australia and Brazil, have slowed by 20% and 11%, respectfully, since the start of the month.
On top of that, data of Internationally Steel trade from top consumer China showed that investment in the country’s giant property sector fell more than 8% year-on-year that causes low demand in the first 9 months of 2022, signalling a lower use of steel.
Earlier in the month, the World Steel Association revised its forecast of global demand to contract by 2.3% this year, compared to earlier forecasts of a 0.4% rise.
In the meantime, bearish pressure was also felt in Chinese markets as the reshuffle of the country’s Politburo signaled President Xi Jinping’s stronger grasp over the country to enact policies that are not market friendly.