Recent data from the domestic steel market shows a slight downward trend in spot prices over the past week, with an average decline of about 0.34%. Despite continued price increases from major steel mills at the factory level, rebar prices remained volatile, and raw material prices like billet also saw minor corrections, which contributed to a weakening sense of confidence among market participants. Many traders believe that after a previous price rally, it has become difficult to move steel in the current environment. With end-of-month pressure, many businesses have started to ease their pricing strategies.
In the sheet metal sector, overall prices have seen a modest drop. While plate prices in cities like Shanghai remain stable, some areas such as Hangzhou and Chongqing experienced slight declines. Market participants are feeling uncertain, with some believing that there is limited downside potential in the near term. However, due to tight liquidity and the need to clear inventory, price reductions seem inevitable. In the Shanghai market, inventory levels have increased for the fifth consecutive week, and hot-rolled coil prices showed a mixed trend, rising initially before falling again. Major steel producers like Baosteel and Wuhan Iron & Steel raised their HRC ex-factory prices in September, but weak demand from the end users has led to reduced order placements and lighter trading volumes. Some merchants are even lowering prices just to get rid of stock.
In the construction steel market, the recent price increase failed to sustain, and prices dropped across key regions including Shanghai, Beijing, and Guangzhou, as well as in many other parts of the country. The weekly price drop per ton ranged between 20 to 90 yuan. Merchants reported that despite the previous upward movement, on-site purchases did not improve significantly, and high-priced transactions became harder to complete. This left only room for more flexible trading. Additionally, with the end of the month approaching, funding conditions tightened, and traders became more cautious in their approach.
The iron ore market, which had been a focal point, finally showed signs of a downward trend. According to reports, iron concentrate prices in Hebei dropped slightly, with a decrease of around 10 RMB per ton. Steelmakers' purchasing enthusiasm remains low, and transactions at higher prices have turned negative. Meanwhile, imported ore prices fell further, with 63.5% grade Indian fines now offered at approximately 138.25 USD per ton, down by 1.5 USD per week. The Platts 62% iron ore index also declined to 137.5 USD per ton. After a period of restocking, most steel mills now hold ample iron ore inventories, reducing their willingness to buy. The spot iron ore market continues to be sluggish, with general transaction volumes and a wait-and-see attitude prevailing. Some market players expressed concerns, indicating a growing pessimistic sentiment.
Analysts from various organizations note that both domestic and international macroeconomic conditions have shown signs of improvement. This could lead to better steel demand in the coming period, and short-term supply pressures in the steel market are not expected to be severe. However, unless there is a fundamental shift in the supply-demand balance, if steel prices rise significantly, the market may soon face challenges in moving goods, forcing adjustments through limited price fluctuations.Hex Keys,Hex Allen Wrench,L Type Hex Allen Key,Hex Key Hex Allen Wrench
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