In 2023, China’s ferrous metal market was on the low level, but the hot-rolled flat products market maintained an optimistic side.

Regarding the manufacturing industry, the investment in electrical machines and equipment and the automobile manufacturing industries increased by 39.1% and 19.2% year on year, respectively.

In terms of supply, although the profit of the hot-rolled coil was narrow, the overall performance was relatively optimistic. Also, the peak season, September and October, is almost approaching, and the steel mills will be unwilling to reduce production.

In conclusion, high investment in China’s manufacturing industry boosts flat product demand. The destocking in the third quarter is almost finished, so prices of flat products might increase in the future.

The high supply of hot-rolled coil might cause a supply-demand imbalance. Therefore, steel mills should control or cut their production.