SHANGHAI, Nov. 4 (SMM) -- According to latest Steelease statistics, steel inventories at Chinese major ports grew during October. Crude steel output at steel mills fell slightly in September, but the level was still high. Since orders and production in overall manufacturing sector turned weak due to tightening cash flows, and production in transportation industry slowed as well due to the bullet train crash and credit problem in railway sector, demand for steel products weakened significantly. Although home appliance and automobile industries were relatively bullish, their positive effect on steel consumption was limited. In addition, overseas demand for steel products was soft as well. Steel spot prices posted significant declines in October, and profit margins at major steel mills declined in response, so crude steel output will fall in November. Steelease predicts total steel inventories at ports will rise slightly in November given current sluggish downstream demand.