Steel Craters in China as Demand Dries Up Amid Covid Lockdowns

Weak demand pushed China’s steel price to the lowest level this year and stockpiles at factories to the highest in two years amid increasing downward pressure on the economy from stringent Covid lockdowns.

Steel rebar, a major construction material, for October delivery traded at 4,505 yuan ($674) a ton Thursday on the Shanghai Futures Exchange, down 14% from the high in April and close to the lowest level this year. Futures of hot-rolled coils, used in manufacturing, declined more than 14% from the April high to 4,632 yuan per ton.