Last week, the ferrous metals series fluctuated downward. Overseas, the US CPI rose by 2.6% YoY, and the PPI increased by 2.4% YoY, slightly above market expectations. Domestically, the Ministry of Finance and two other departments announced that in cities that have abolished the classification of ordinary and non-ordinary housing, individuals selling homes they have owned for more than two years will be exempt from value-added tax (VAT). In the spot market, the quotes followed the futures market downward, but with steel inventory at relatively low levels, the sentiment to stand firm on quotes was moderate.
Looking ahead, as we enter a macro vacuum period before the important macro meeting in December, the ferrous metals series temporarily returns to fundamental trading. In the short term, the decline in pig iron production is relatively slow, steel inventory pressure is low, and fundamental contradictions are not prominent. It is expected that steel prices will fluctuate downward this week, lacking upward momentum due to the absence of macro guidance or unexpected demand surges.
