The ferrous metals series overall strengthened, and there is still room for an upward trend after the holiday

This week, the ferrous metals series overall fluctuated upward, with the traditional peak season's impact initially evident. Early in the week, steel import and export data were released, showing a significant increase in steel exports WoW. Mid-week, the US August PPI rose 1.7% YoY, indicating that US inflation pressure was easing. In the domestic spot market, downstream end-users restocked ahead of the Mid-Autumn Festival early in the week, and bears gradually closed their positions, further pushing up HRC prices. Additionally, in the latter half of the week, apparent steel demand data showed a significant increase in demand, leading to a surge in speculative buying and a noticeable increase in trading volume WoW.

In the short term, with robust steel exports and downstream restocking before the holiday, apparent steel demand increased, restoring market confidence. Coupled with the imminent US Fed rate cut, steel prices are expected to fluctuate upward in the short term. However, end-user demand during the peak season still faces scrutiny, and the slow increase in pig iron output suggests that steel prices are unlikely to remain high in the long term.