“I’m not too worried, but you also can’t kid yourself for too long. The supply story is still there, but there are more and more demand questions emerging,” one trader in the region said.

Notably, prices for industrial consumer products declined 2.7 percent in June after a 1.7 percent fall in May.

China has announced it will peak carbon dioxide emissions by 2030 and achieve carbon neutrality by 2060.

The move is part of China's broader measures to build a modern industrial system backed by the real economy amid mounting external uncertainties.

China PPI for June -5.4% y/y (expected -5.0%)

Steel prices are expected to rise again soon.

North American steel scrap prices could face their third consecutive month of decline across all grades in July as traditional summer production slowdowns hinder demand.

Broken down by districts, here’s production for the week ending July 1, 2023 in thousands of net tons: North East: 137; Great Lakes: 563; Midwest: 215; Southern: 758 and Western: 67 for a total of 1740.