Due to weak demand and production cuts affecting the outlook, China's steel market has remained range-bound
On November 13th, the Chinese steel market continued to fluctuate within a narrow range, with limited fluctuations in both futures and spot prices. Construction steel prices rose slightly, while other categories remained stable.
Overall demand remains weak, and the apparent demand for rebar is approaching a five-year low. Losses and seasonal pressure have prompted some regions to cut production, and it is expected that the output of molten iron will further decline.
The profitability of steel mills has dropped below 40%, but if the losses are limited to depreciation, keeping prices close to costs, steel mills may continue to operate.
The persistently high output of hot-rolled coil and the increasing inventory pressure will be the key variables for the future export trend. The futures market for ferrous metals remained stable, and the volatility of coal and coke narrowed.
In the short term, steel prices will mainly be driven by changes in molten iron production and inventory
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