The Hebei Province Metallurgical Industry Association stated that the inventory level in the local steel market moved up during the long National Day holiday, which will curb finished steel prices in the short term. However, starting from October 1, steel producers in the regions of Beijing, Hebei Province and Tianjin are implementing production cuts for the winter season, which will reduce the steel supply to the spot market in the longer term, and will likely result in lower inventory levels later. Moreover, the month of October is regarded as part of the traditional peak season, with demand from downstream users normally good, which will provide solid support for steel prices.
As a result, it is expected that in the traditional peak season of October, finished steel prices in China will likely increase starting from the middle of October, and may move down at the end of the month as winter approaches