On the supply side: Most long-process mills are currently maintaining their current sub-saturated production pace, with only a few producers resuming rolling line production as planned. After the two rounds of coke price cuts took effect, the cost-effectiveness of hot metal improved, easing the scrap procurement pressure on EAF mills. Combined with per-tonne steel profitability staying largely above the break-even line, some EAF mills have extended their operating hours or resumed EAF production.
On the demand side: Last period's National Day holiday weighed on end-user construction activity and logistics transport, dragging construction steel demand sharply lower. Post-holiday, with demand gradually returning to normal levels and trading sentiment improving, apparent demand posted a notable week-on-week increase.
According to SMM statistics, in the current period mill stocks and social stocks of construction steel both saw some destocking. Total construction steel inventory came in at 6.7893 million tonnes, down 255,700 tonnes period-on-period, or −3.63%, with the inventory trend shifting from accumulation to destocking.
