China's steel market is expected to experience uncertainty in September, with fluctuating prices driven primarily by supply-side issues and a generally pessimistic economic environment. Market participants are concerned that, without a clear improvement in demand, steel markets may struggle. Additionally, fears of a correction in overvalued raw material prices and pressure from the flat product market are impacting the overall market sentiment.

The industry participant highlighted that while improved fundamentals provide some momentum for a potential rebound, an unexpected surge in supply could add pressure and further deepen market pessimism. The participant recommended that profitable steel companies should focus on production while flat product producers should actively control their output to avoid market oversupply.

Both steel producers and traders are urged to manage production carefully and maintain positive market expectations, while end-users should offer reasonable profits to manufacturers and replenish their inventories in a timely manner.