China’s hot sheet production rose 7.1 percent to 3.1 million tons last week. However usually the peak month for steel consumption in China is September  , the recovery in steel demand, including hot sheets, has been relatively slow since the summer recession so far, according to sources.

 In contrast, both production and market inventory have been relatively high over the past week, so that the mismatch of supply and demand has reduced market confidence, causing buyers to generally adopt a cautious stance. ‎

 The negative market atmosphere lowered the price of hot sheet in China’s spot and derivatives markets last week. The spot market price fell by 5% to $434 per tonne with VAT, the lowest level since November 2016. ‎

‎ The most traded hot sheets futures contract of the Shanghai Stock Exchange for January delivery also fell for eight consecutive trading days, falling by 7% to $435.‎