Iron ore falls another 2.7%, steel inventory declines, steel prices struggle for significant surge.

On September 17th, the domestic steel market weakened further, with Tangshan's general billet factory price stable at 3370 yuan per ton. Today, the black futures market opened lower and fluctuated, with iron ore futures continuing to lead the decline, prompting traders to follow suit and reduce prices to sell. This week, steel inventory slightly decreased, mainly due to the weaker-than-expected "Golden September" demand, which has dampened market confidence.

On the 17th, the main contract of rebar futures experienced a narrow range fluctuation, closing at 3577 with a 0.28% decline. The DIF and DEA continued to move downwards, while the RSI indicators were located between 18-43, operating below the Bollinger Band lower track.

Domestic construction steel prices continued to decline slightly on the 17th. The average price of rebar in major cities is now 3,796 yuan/ton, down 10 yuan/ton from the previous trading day. The Mysteel rebar price index is 3,820, down 10 points from the previous day. On the message front, Mysteel data shows that the output of construction steel slightly increased this week, while both steel mills and market inventories decreased, and apparent consumption increased slightly compared to the previous week, indicating an improvement in downstream demand for construction steel. Currently, downstream demand is stable, and high inventory levels of construction steel are continuing to be absorbed. However, considering the significant decline in black futures prices, which has had a significant impact on market sentiment, it is expected that domestic construction steel prices may continue to slightly adjust downwards in the short term.