Observers noted steel producers will earn more money in the third quarter than they did during the previous three months, although lower than expected. But they may see a drop in their profits again in the fourth quarter as capacity is being unleashed at a faster pace into the already crowded market.

As of October 23, domestic inventories of rebar stood at 4.32 million tons, compared to 2.13 million tons in the same period last year; hot rolled steel’s four million tons, to 1.96 million tons; cold rolled steel’s 1.32 million tons, to 1.15 million tons; wire rod’s 1.30 million tons, to 912,000 tons; medium plate’s 1.35 million tons, to 1.11 million tons.

At the moment, the steel prices are manageable relatively to their costs, and mills are in a break-even point. Analysts reckoned the steel prices won’t tumble in the fourth quarter, as they experienced last October, unless excessive panics occur around the market.