Steel rebar futures held their recent decline near CNY 3,100 per ton in early September as rising raw-material costs deepened losses at Chinese steel mills, offsetting stronger exports. Average costs for hot metal and steel billets at major mills in Tangshan rose sharply during the week, pushing average losses above CNY 100 per ton. China’s non-manufacturing PMI, covering services and construction, remained at 49.0, matching July and marking its weakest reading since December 2022. Steel exports increased 7.8% week-on-week to 2.55 million tons in the week through August 31, their third consecutive weekly gain and highest level in nearly eight weeks. Prices had rallied sharply in August as investors anticipated seasonally stronger demand ahead of the September peak construction season. The retreat also followed concerns that higher oil prices could increase inflation risks and reinforce expectations of interest-rate hikes, while China’s National Development and Reform Commission reportedly urged local governments to accelerate major projects.