In the period from September 30 to October 8, 21 cities in China including Beijing and Shanghai launched cooling measures aimed at reining in housing prices, included higher mortgage down payments and home purchase restrictions in order to curb speculation. With the measures in place, housing transaction volumes in first and second-tier cities in China have decreased by more than 30 percent year on year. Market insiders state that the measures to curb housing prices will adversely impact demand for finished steel in the domestic market, thereby exerting negative pressure on finished steel prices.
Meanwhile, entering the autumn season, steel enterprises in China will initiate production restrictions to ensure good air quality. In particular, the authorities in the city of Tangshan in Hebei Province have announced a strengthened environmental measure for the implementation of production restrictions in the period of October 10-20 to improve air quality. In addition, maintenance works at steel enterprises in China have increased in October, which will reduce finished steel supply to some extent in the market. It is thought that finished steel prices in China will likely indicate some fluctuations in the coming period.