# Steel Rebar Futures Hold Near CNY 3,100 as Lower Coke Prices Ease Margin Strain

- URL: https://stocks.freetheai.org/news/steel-rebar-futures-hold-near-cny-3-100-as-lower-coke-prices-ease-margin-strain-02963a
- Published: 2026-10-12T07:13:55Z
- Category: commodities; sentiment: mixed; impact: medium
- Written by our AI from expert market sources across the web for FreeTheAI Stocks, built by Vibhek Soni
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Steel rebar futures held near CNY 3,100 per ton after finding support from lower input costs. Dropping spot prices for coke reduced financial losses for steel producers, offering relief to the sector and potentially reducing the need for widespread output cuts.

Despite lower raw material expenses, the broader industry continues to struggle with weak demand. China's ongoing real estate downturn and slow construction activity have heavily weighed on steel consumption. At the end of September, only 6.9% of Chinese steelmakers were turning a profit, underscoring severe operational pressure across the market.

Investors will be watching how economic support measures translate into actual demand. Chinese authorities have allocated CNY 550 billion ($82 billion) in unused debt quotas to strengthen local government finances and fund infrastructure projects, which could offer future support to steel demand if construction activity rebounds.

## Key points

- Steel rebar futures traded around CNY 3,100 per ton as lower spot coke prices reduced losses for steelmakers.
- Only 6.9% of Chinese steel producers were profitable at the end of September due to ongoing margin pressure.
- China allocated CNY 550 billion in unused government debt quotas to expand infrastructure spending and local finance.
- Weak construction activity and a prolonged real estate market downturn continue to drag on domestic steel demand.

## Questions and answers

### Why are steel rebar futures finding support?

Steel rebar futures stabilized near CNY 3,100 per ton because declining spot coke prices lowered raw material costs for steelmakers, reducing their financial losses and easing immediate pressure to trim production.

### How profitable are Chinese steelmakers currently?

Sector profitability remains severely depressed, with recent data showing that only 6.9% of Chinese steel producers were profitable at the end of September amid weak construction demand and shrinking margins.

### What actions is China taking to support infrastructure spending?

Chinese authorities allocated CNY 550 billion ($82 billion) in unused government debt quotas to bolster local government finances and increase spending on infrastructure projects.