Prices of construction steel in Chinese market to continue to recover in Oct
Time:Thu, 12 Oct 2023 09:36:52 +0800
keywords :
Without the market confidence support in September, the price of construction steel in China fluctuated and rose slowly. It is expected that domestic prices will maintain a rebound trend in October.
The continuous increase in September production was mainly due to the steel plants' resumption. However, the increase in output of steel mills and restocking of raw materials before the long holiday have enlarged the scope of production losses.
On the other hand, steel demand in October is optimistic, and production losses will limit the continued increase in supply. At present, local distributors' inventory is generally low, and the market may shift from active destocking to passive destocking. Therefore, the price rebound of construction steel in October will strengthen.
In summary, the cost of molten iron remaining high will put greater pressure on the fourth quarter performance. Once destocking accelerates, the market will gradually restore reasonable margins.
