According to the China Iron and Steel Association (CISA), although the increase in iron ore prices provides support for domestic steel market prices, the core factor that affects market prices is supply. Recently, as the CISA stated, downstream demand has slowed down, and so Chinese domestic mills should adjust product variety and control production.
Steel inventory in China has been rising since the beginning of September. In the second week of the month, domestic steel inventory increased to 14.04 million mt, up 1.48 percent compared with the end of August