August 4, 2025 – China's steel futures extended losses today, with prices edging lower throughout the session amid weak market sentiment. Coking coal contracts suffered even steeper declines, plunging to limit-down levels, dragging down the broader ferrous sector. Spot prices across the country also softened, dipping between 10 and 60 yuan per ton, while trading activity remained sluggish as participants adopted a cautious stance.
Outlook: Further Weakness or Potential Rebound?
Opinions are divided on tomorrow's market direction. Some analysts warn that bearish factors have yet to be fully priced in, suggesting further downside for steel and raw material futures. However, others believe the prolonged sell-off could attract bargain-hunting demand, potentially leading to a short-term stabilization.
In summary, the ferrous market remains under pressure from sluggish demand and high inventories, with prices likely to stay weak in the near term. Traders are advised to monitor policy developments and spot market transactions closely while maintaining a defensive stance.
