About Steel: In the first four trading days of the week, steel market headed down. Construction steel price decreased by 60-230 yuan per ton; HRC fell by 60-160 yuan per ton; medium plate decreased by 20-80 yuan per ton; CRC fell by 10-80 yuan per ton; sections decreased by 20-100 yuan per ton.

Special steel price decreased as well. For instance, the price of drawing wire went down by 70-180 yuan per ton. That of cold heading was down by 20-120 yuan per ton. 304 stainless steel price fell by 200-1000 yuan per ton; 430 stainless steel decreased by 100 yuan per ton; 201 stainless steel was strong.

SteelHome predicts that common steel price will rise by 50 yuan per ton. Structural steel price will rise by 50 yuan per ton. 304 stainless steel price will keep falling, while 201 & 430 stainless steel will be mostly stable.

About Coal and Coke: Coke and coal markets were mostly stable. SteelHome predicts that coal and coke prices in the days above will be strongly moving.

About Raw Materials: Imported iron ore price slid, with falling transactions in market. Port iron ore inventory added 6 million tons to 139.7 million tons, a record high in single week.

Billet price decreased gently, as rolling mills in Tangshan city stopped production. However, the expectation toward billet supply reduction for winter, billet suppliers were bullish on the price movement.

Mills’ rise in scrap purchase price added to market price rise. However, the price decrease in finished steel products and electricity limitation will hummer mills’ buying activities in scrap.

FeSi and SiMn price kept stable, but the uncertainties from power shortage sustained.

About Industry: According to CISA, the daily output of crude steel in the first ten days of October was 1.8732 million tons, up 5.9 percent over the daily one of previous ten days; daily pig iron production was 1.6708 million tons, a drop of 0.62 percent; daily steel production was 1.8301 million tons, down 1.82 percent.  

As Customs reported, Chinese steel export of 4.92 million tons, up 28.5 percent on year; steel import was 1.256 million tons, down 56.5 percent. The combined steel export in nine months totaled 53.024 million tons, up 31.3 percent on year; combined import was 10.716 million tons, down 28.9 percent.

Iron ore import in September was 95.611 million tons, down 11.9 percent on year; the combined import in nine months totaled 841.953 million tons, down 3 percent.

About Macro: In September, China’s CPI rose by 0.7 percent on year; PPI rose by 10.7 percent on year or up 1.2 percent over August.

At the end of September, M2 balance was 234.28 trillion RMB, up 8.3 percent on year; M1 balance was 62.46 trillion RMB, up 3.7 percent on year; Mo balance was 8.69 trillion RMB, up 5.5 percent. RMB loans added 1.66 trillion RMB, a decrement of 232.7 billion RMB.

In the month, social financing scale added 2.9 trillion RMB, a reduction of 567.5 billion RMB. By the end of the month, social financing scale volume was 308.05 trillion RMB, up 10 percent.