The steel market price in October went down all the way.The root cause is supposed to be demand release less than expected. At this stage, the steel market will re-enter the downward adjustment cycle. There are several reasons for this:
First, due to the coming winter and heating supply, the steel industry will reduce production. This will impose certain restrictions on the market resources. The second is the large-scale increase on steel transportation costs. Third, the pessimism sentiment toward current market, and the factory price of steel is lowered. Fourth, the cost of current steel prices is also loose. On the whole, the steel consumption has gradually shifted from the peak to the low, and the market lacks effective rebound power support.
After entering the fourth quarter, in order to stabilize the economic growth, it is not excluded to introduce relevant and stable growth policies which may support steel market.www.rogosteelpro.com