China Steel Futures Drop Amid Weak Demand Forecast

Steel rebar futures in China eased after a three-day gain in profit, shedding nearly 2 percent on concerns about weak demand amid increased production at smelters.

Construction work tends to slow down during periods of hot summer weather, rising again in the fall when temperatures drop before winter arrives. The Chinese Meteorological Service said on Wednesday that temperatures in many cities across the country are above 40 degrees. Some regions have hit record highs.

Traders and analysts said trading volumes in physical markets dropped due to high temperatures and consumers took a wait-and-see attitude.