After a significant surge in late-July 2025, Chinese steel prices continued to shed gains in August on weak end-user demand signals. Notably, surging futures, optimism due to a trade truce with the US and declining inventories at CISA-affiliated steel mills in late-July had offered support to prices. Moreover, the rally in the raw materials markets fuelled price rise in August, Benchmark Australian iron ore fines prices gained $3/tonne (t) m-o-m to a monthly average of $102/t CFR China in August on production restrictions imposed in mid-August on certain steel mills in Tangshan to combat air pollution. Safety and environmental checks at coking coal mines and successive rounds of hikes in coke prices amid tight supplies continued to support steel prices.
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