Supply Cuts Fail to Offset Weak Demand, Keeping China’s Steel Market Range-Bound in Mid-October
In mid-October, China’s steel market remained under pressure from weak supply and demand, with costs providing some support. In late September, daily crude steel output at major steelmakers fell 2.1% month on month, while mill inventories dropped 8.4%. Demand remained weak, with construction steel transactions down over 20%. Narrowing regional price gaps reduced southbound shipments from Northeast China, making Beijing the main destination. Rebar prices remained relatively firm, while hot-rolled coil weakened and medium plate and cold-rolled coil faced continued pressure. Meanwhile, rising port iron ore inventories and declining mill stocks, together with further coke price cuts, challenged cost support. With demand recovery limited and few strong market drivers, steel prices are expected to remain range-bound, with varying performance across product categories.
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