The steel market remains at a dead end after the holidays in China

A few days after national holidays in China, the levels of prices for steel remain unchanged, maintaining ambiguity about their further direction.

In September, prices remained low, showing a brief rise in July. The factories restored the pace of production last month after some correction in August. In September, the Chinese index of procurement managers (PMI) decreased by 4.2 points to 49.2, moving back to the reduction after growth within two months in a row. The production index in September increased by 1.1 points compared to August to 53, enthusiastically meeting the decision of factories on expanding production.

The index of new export orders fell by 7.8 points to 44.9, accumulating the pressure of metallurgists in promoting orders. The finished product index of the finished product grew 14.8 points to 52.6, as the plants became strove to strengthen the reserve. Investments in highways and railways, urban infrastructure and construction have positively affected the general market for the domestic economy of China, therefore, the demand for steel has growth potential in the future.

However, the pressure is preserved because the credit crisis in the metallurgical industry has remained unchanged, and there is still concerns about the program of purchase of American bonds. The market is at the intersection, but still a surge of optimism in early November before winter holidays is not far off.