[Daily steel market report] [2025-10-14]

**Today's steel market price briefing**
**Oct 14, 2025**

According to market data on October 14, 2025, the domestic steel market overall shows weak demand and price pressure. Construction steel and section steel are performing weakly, while the pig iron market remains relatively firm due to cost support.

Pay Attention to These Market Dynamics

To understand the current market contradictions, the following aspects can be focused on:

- Supply and demand relationship is the core pressure.

The main pressure in the current market comes from the contradiction between weak demand and relatively high supply.- Demand side: Nationwide construction steel transaction volume totaled only 94,577 tons, a significant daily decrease of 10.8%. End users mostly maintain purchases according to demand, and market transaction sentiment is poor.

- Supply side: In early October, key steel companies' daily crude steel output was 2.032 million tons, a month-on-month increase of 7.5%; at the same time, steel mill inventories of steel increased by 8.2% compared with the previous period. Supply remains high, and inventories are accumulating.

- Cost support shows differentiation.The fluctuations in raw material prices are inconsistent, making the cost support complex.- Iron ore: Prices remain relatively strong, closing slightly higher in the night session.

- Coke: The coke-steel game remains stable.

- Overall: Although some raw material prices are weakening, the pig iron market remains strongly supported due to high costs and low inventory. However, high costs have not effectively transferred to finished steel prices, which squeezes steel mills' profit margins.

- Macro and market sentiment- Policy information:

 The National Development and Reform Commission issued the "Special Management Measures for Central Budget Investment in Energy Saving and Carbon Reduction," supporting energy-saving and carbon reduction transformations in key industries such as steel. The central bank also announced it will conduct 600 billion yuan in buyout reverse repurchase operations.

- International trade environment: The market is sensitive to factors such as tariff threats. However, there are also positive news, such as customs data showing that in the first three quarters, China’s import and export of goods rose 4% year-on-year.

- Market sentiment: Traders mainly operate on a quick-in-and-out basis with strong risk-averse sentiment. Overall market confidence is insufficient, and the market generally takes a cautious and observant attitude toward future developments.

Summary and Outlook

Overall, as of October 14, 2025, the steel market is in a state of weak demand, high supply, and cost-supported tension.

- Short-term outlook: Due to weak demand and persistent inventory pressure, prices of construction steel and other categories will continue to face downward pressure in the short term, expected to operate mainly in a weakly fluctuating manner. However, strong cost support makes a deep price drop unlikely.

- Medium- to long-term perspective: Focus should be on the implementation of specific policies and the pace of inventory reduction.

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