China’s ferrous market lacked clear direction last week, with shifting sentiments and stable steel fundamentals amid uncertainty about upcoming policy announcements. Apparent steel consumption weakened due to the off-peak season, though total inventories fell for the ninth week as reduced supply offset softer demand. Flat steel outperformed but raised oversupply concerns as production increased, while declining hot metal output pressured raw materials. Coking coal saw the steepest drop due to rising mine inventories, with a fourth round of coke price cuts expected soon. Iron ore prices held firm early in the week but softened as portside inventories rose, while scrap outperformed on seasonal tightness and winter stockpiling. Market resilience is expected in the near term, but weakening fundamentals and profitability may heighten downward pressure without strong policy support.
