SunSirs:China's Steel Output Contracts in November Amid Weak Steel Plate Demand

November's steel industry was characterized by: deepening contraction in production, marginal improvement in domestic demand, continued pressure on external demand, and costs fluctuating at elevated levels. Price stabilization relied more on cost support and supply contraction than on a substantive recovery in demand. Quarterly decline in manufacturing steel demand expected for December

1. [Steel Structure Industry]

Survey data indicates slight improvement in the steel structure sector. With winter approaching, most construction sites and factories are rushing to complete projects, leading to a slight increase in procurement volumes. Enterprises have slightly increased inventory stockpiling, contributing to a rise in raw material costs. Current raw material inventories rose 2.34% month-on-month. Overall project commencement and consumption have increased, with daily raw material consumption up 1.45% month-on-month, reflecting growing market demand.

2. [Machinery Industry]

Survey data indicates a slight decline in orders for the construction machinery sector. December consumption is impacted by domestic seasonal factors, with infrastructure project progress slowing in some northern regions, leading to a slight decrease in demand for construction machinery raw materials. Raw material inventories fell 2.84% month-on-month; days of raw material availability decreased by 6.61%; and daily raw material consumption dropped 2.33% month-on-month.

3. [Home Appliance Industry]

Survey data indicates the home appliance sector exhibits pronounced cyclicality due to seasonal influences. Quarterly declines accelerated slightly, leading to a noticeable drop in raw material procurement. Raw material inventories decreased by 8.07% month-on-month; days of raw material supply fell by 1.76% month-on-month; daily raw material consumption increased by 1.83% month-on-month. Seasonal factors caused raw material procurement to decline as enterprises drew down existing inventories.

4. Automotive Industry

Survey data indicates the automotive sector maintains relatively robust performance, with demand growth significantly outpacing other industries. Raw material inventory decreased by 8.07% month-on-month; days of raw material inventory available fell by 1.76% month-on-month; daily raw material consumption increased by 11.61% month-on-month.

As an integrated internet platform providing benchmark prices, on December 4th, the benchmark price for medium and heavy plates from SunSirs was 3272.00 RMB/ton, an increase of 0.93% compared to the beginning of the month (3242.00 rMB/ton).

Application of SunSirs Benchmark Pricing：

Traders can price spot and contract transactions based on the pricing principle of agreed markup and pricing formula (Transaction price=SunSirs price + Markup).

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