The August PMI of China's steel industry was 46.1%, up by 13.1% month on month. This data presented that the tension in the steel market has eased, and demand was expected to improve continuously in September, boosting the price trend to stabilize.

Local steel mills' production has gradually resumed, most of the blast furnace maintenance has been completed, and after the related cost of raw materials has dropped, the willingness of steel mills to resume capacity will recover.

In terms of demand, driven by China's economic policies, the actual need will be blooming. However, under these factors of hot weather, power outages, and sluggish real estate, the support for steel prices is limited.

On the premise that demand was expected to recover, coupled with increased capacity, the overall steel market would be improved.