Since last week, outdoor construction projects in China have been affected by strong cold waves successively and stagnant, and the overall domestic demand is showing a downward trend. Temperatures will continue to be low in most areas, which may also bring about an earlier start to the off-season for demand. Coupled with the recent occurrence of coal mine safety accidents one after another, coal will be in a tight supply in the short term.

Since the middle of last month, European natural gas, crude oil, and other bulk commodity prices have soared due to a significant increase in freight rates caused by the Red Sea situation. Besides, the post-disaster reconstruction in Gansu is bound to boost local steel demand, while the overall recovery won't appear until the spring of next year due to cold weather in winter. The short-term steel prices would continue to fluctuate slightly.