The average price of steel in northern China's Tianjin was 3,818.83 yuan/t in November, down 4.4% month on month and 6.8% year on year, according to monitoring data from the local commerce department.

Despite continued expansion of steel production leading to increased raw material procurement, their prices fell due to the expected off-season demand.

Overall, raw material prices showed a downward trajectory in November, yet trends varied significantly among different categories.

Iron ore prices rose under speculation, while coke prices tumbled following three rounds of price decreases. The decline in finished steel prices and the narrowing of electric furnace steelmaking profits have weakened the support for scrap steel, leading to a moderate retreat in prices.

Under the influence of seasonal weakness entering November, steel mills' profits have gradually narrowed, and end-user demand has also been weak. Although favorable macro-favorable policies have been continuously rolled out, the effect on boosting steel prices is relatively limited.

December is expected to see steel prices fluctuate at low levels amid a continued lack of demand. However, with the simultaneous weakening of steelmaking profits, the cost line of enterprises may become a key supporting factor, leaving limited room for further fall.