China steel rebar futures climbed back above CNY 3,000 per tonne after hitting a one-year low of CNY 2,085 on August 3, supported by tighter iron ore supply and firmer operating conditions at Chinese steel mills. Iron ore futures rose above CNY 710 per ton as inventories at major Chinese ports edged down to about 156.8 million tons, daily hot metal production increased to 2.38 million tons, and mill profitability improved to 33.77%. Those shifts pointed to somewhat stronger near-term raw material demand even as the broader backdrop remained mixed. Earlier supply pressure had been linked to BHP strike action at Port Hedland and weaker seaborne shipments and Chinese port arrivals. At the same time, weak property activity, soft inflation and subdued construction indicators continued to weigh on steel consumption. The People’s Bank of China is also set to conduct a 1 trillion yuan reverse repurchase operation, a liquidity move that could support economic activity and credit conditions.