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Report Summary 1) Report Industry Investment Rating No relevant content provided. 2) Core Viewpoints of the Report - In October, hot-rolled coil (HRC) prices fluctuated downward. Although HRC demand was resilient, building material demand was weak. High supply levels led to significant inventory pressure, and market funds mainly aimed to short steel mill profits. In November, building material demand is expected to remain sluggish, while plate demand has some resilience but limited growth. Exports will still be the main driver of total demand. High inventory requires production cuts, which will weaken cost support for steel and lead to potentially weak prices [3][24][26]. 3) Summaries Based on Relevant Catalogs Market Review - Since October, HRC has been on a downward trend. Despite HRC demand showing some resilience, building material demand was weak. Before the National Day holiday, steel prices started to decline due to weak demand and high production. Market funds mainly focused on shorting steel mill profits. After the holiday, as steel apparent demand further declined, even if steel mills reduced production, price support was insufficient, and the market continued to fall [3][5][25]. Supply and Demand Analysis - Supply: In October, HRC supply remained at a relatively high level, with weekly production between 3.2 million - 3.3 million tons, at a high level compared to previous years. Supply of cold-rolled coils, medium and heavy plates, and other plate products was also at a high level. High supply led to significant inventory pressure despite relatively strong HRC demand [3][11][25]. - Inventory: In October, HRC inventory continued to rise from around 3.8 million tons to 4.18 million tons. Weak demand and high supply contributed to the increase in inventory. High production suppressed steel prices, but strong raw material demand delayed the expected negative feedback, and raw material prices provided some support to steel prices. Once steel production is cut, cost support will weaken [15][18][25]. - Demand: Terminal demand for plates in industries such as home appliances, automobiles, and ships continued to strengthen, driving plate demand. In September 2025, the production of home appliances and automobiles showed growth, supporting HRC demand. However, in September, domestic real estate, infrastructure, and fixed - asset investment declined year - on - year, dragging down steel demand. Although plate demand continued to strengthen, the overall steel demand declined. Steel exports increased year - on - year, supporting total demand. In November, building material demand is expected to remain weak, plate demand has some resilience but limited growth, and exports will still be the main driver of total demand [19][21][24]. Summary and Outlook - In October, HRC prices were weak due to weak building material demand, high production, and inventory pressure. Although raw material prices provided some support, once production is cut, cost support will weaken. In November, building material demand is unlikely to improve, plate demand has limited growth, and high inventory requires production cuts, which will lead to potentially weak steel prices [25][26]