Steel prices will keep hiking, underpinned by macroeconomic and related markets

Gathering tractions from pick-up of macroeconomic and related markets, ferrous metal prices moved upwards again last week. The PMI index for steel downstream sectors stood at 49.57 points in October, down 0.77 points MoM and 0.46 points YoY. The seasonally-adjusted composite index stood at 48.65, up 0.08 points MoM but down 0.39 points YoY.

In the future, there will be still room for ferrous metal prices to make gains. It is expected that profits will further improve this week, but the gain may keep narrowing.