On August 5th, the spot steel market saw a slight increase, while all major futures contracts saw gains. Rebar and iron ore prices rose by approximately 1.3%, hot-rolled coil (HCC) by 1.89%, coke by 3.16%, and coking coal by 6.92%.
Market rumors circulated that all coal mines in Shanxi were conducting a thorough investigation into overproduction from January to June.
A coal mine in Linfen’s Yaodu District halted operations on August 1st, with a resumption date yet to be determined.
In the afternoon, coking coal futures saw a strong rally, with the main contract hitting its upper limit of 1,193.5 yuan/ton and closing up nearly 7%. This drove up rebar and HRC prices, but the current weak demand for steel persists.
EU officials: The 15% tariff imposed by the United States on the EU is an all-inclusive tariff
According to CCTV News, EU officials said that the 15% tariff faced by EU goods entering the United States is all-inclusive. The official said that the 15% tariff rate applies to all goods except steel and aluminum, and also applies to automobiles and auto parts.
China Iron and Steel Association: In late July, the social inventory of five major steel varieties in 21 cities reached 7.85 million tons, an increase of 100,000 tons from the previous month.
In late July, social inventories of the five major steel varieties in 21 cities reached 7.85 million tons, a month-on-month increase of 100,000 tons, or 1.3%, and a year-on-year increase of 1.26 million tons, or 19.1%.
Compared to the same period last year, social inventories decreased by 2.55 million tons, or 24.5%. Regionally, social steel inventories in the seven major regions saw month-on-month increases and decreases in late July.
Inventories in Northwest and Northeast China continued to decline, while those in East China remained flat. All other regions saw increases, with Central China experiencing the largest increases and increases.
Currently, the continued weakness in steel demand amidst high temperatures and heavy rainfall is likely to intensify supply and demand pressures.
This, coupled with rising social inventories, is bearish for steel prices.
CRIC: Real estate developers’ enthusiasm for launching new projects steadily declined in August, with first-tier cities facing comprehensive pressure
CRIC Real Estate Research indicates that real estate developers’ enthusiasm for launching new projects steadily declined in August, with overall supply reaching its second-lowest level of the year. Land constraints on new housing supply are becoming increasingly pronounced. According to CRIC research, 28 key cities are expected to add 4.76 million square meters of commercial residential space in August, a 26% decrease month-over-month and a 38% year-over-year drop.
The absolute volume is only higher than in February 2025, and the cumulative year-over-year decline through the first eight months of 2025 was 17%. First-tier cities are under pressure across the board, with Guangzhou the only city to buck the trend and experience growth.
Over 60% of second-tier cities saw declines both month-over-month and year-over-year. Supply in third- and fourth-tier cities continued to hover at low levels, though it rebounded month-over-month.
The real estate market is still undergoing adjustment, dragging down steel demand and negatively impacting steel prices.
