Industry conflicts are relatively minor & macro factors continue to ferment. After the steel price correction, there is still room for an upward trend

After the holiday, the ferrous metals series opened high and then adjusted and consolidated. On the news front, the National Development and Reform Commission did not propose further favorable policies at the press conference of the State Council Information Office; Baosteel announced November domestic prices for sheets & plates, with significant increases in hot-rolled, cold-rolled, and thick plates. In the spot market, steel prices rose first and then fell this week, with strong market resilience.

In the short term, the Ministry of Finance is expected to hold a meeting on Saturday, and the macro expectations for October continue to ferment, focusing on the strength and scope of policy stimulus. Industry-wise, the current steel fundamentals have few conflicts, and furnace charge prices are trending stronger due to the resumption of production. Steel prices are expected to have upward potential after this round of consolidation.