The impact of macro policies intensifies & the apparent demand recovery is lower-than-expected in the peak season. The upward correction space for steel prices narrows in late October

Last week, the ferrous metals series prices fluctuated rangebound. In terms of news, at the beginning of the week, the central bank lowered the one-year and five-year LPR by 25 basis points; mid-week, the first round of coke price cuts was implemented; later in the week, the National Development and Reform Commission stated that a batch of incremental policy measures is still "on the way." In the spot market, steel prices fluctuated within a narrow range last week, end-use sector procurement was cautious, and market views on the future were mixed.

Looking ahead, macro meetings and policies are still expected, providing strong support for steel prices; recently, steel mill profits weakened, rebar production growth slowed, HRC production recovered slowly, and overall, the fundamental contradictions between coils and rebar were minimal; steel prices are expected to fluctuate upward this week, possibly rising slightly.