From a comprehensive perspective of view, the fourth quarter of this year will not totally be depressing for China’s steel industry. But to have a “warm” winter will not be that easy either.
Certain factors will lead to unavoidable ups and downs for steel price
Stepping into September, China’s steel market was activated by surging steel pricing, following the adoption of energy conservation policy throughout the country. However, the upward trend has been suppressed ever since September 8, as the overestimated influence brought by above policy cooled down slowly.
The news of recent days that the iron ore price in the fourth season will be down by 10% also weakens the support from production cost.
Industry insiders think that there will still be many uncertain factors in the fourth season, which makes the ups and downs of steel even more likely.
Steel demand in the fourth season will not decrease
According to estimation, the real estate market in the latter half of this year will keep progressing, so the demand for steel products will still be quite strong.
Anyhow, China steel industry will face enormous challenge if it is going to have a “warm” winter in the fourth season.