Core Viewpoint - The steel industry is experiencing a decline in demand and production, with the PMI for September at 47.7%, indicating a continuous decrease for two months, and the traditional peak season characteristics are not evident [1][3][4]. Demand and Supply Analysis - Weak real estate investment and slowing infrastructure construction have contributed to a lackluster demand in the steel market, with the new orders index dropping to 45.2%, a decrease of 4.5 percentage points [3][4]. - The production index for the steel industry fell to 45.7%, down 2.3 percentage points, indicating a continued slowdown in production activities [8][12]. - Despite a slight increase in average daily crude steel production in early September, overall production levels have decreased compared to the previous month [8][12]. Inventory and Pricing Trends - Finished product inventory pressure is rising, with the inventory index reaching 54%, marking a two-month expansion and the highest level in nine months [8][12]. - Raw material prices remain high, with the purchasing price index above 60% for three consecutive months, leading to increased cost pressures for steelmaking [12][14]. - Steel prices showed minor fluctuations, with the Shanghai rebar price index indicating a slight decrease compared to the previous month, compressing profit margins for steel mills [14][16]. Future Outlook - October is expected to see a rebound in steel demand due to the resumption of outdoor construction post-holidays and the easing of extreme weather impacts [16][17]. - Steel mills are anticipated to increase production in response to rising demand, with a business activity expectation index of 67.1%, indicating a positive outlook for the coming month [17].