China's manufacturing production and related steel demand remained healthy in August, supporting the flat steel market.

However, several China-based mills and trading sources said the seasonal demand recovery in September was too modest, and they were cautious about the growth momentum in manufacturing steel demand in the coming months.

Despite steel market inventories still rising, flat steel production has remained high so far in September, which could weigh on the steel market in October if no fresh policy stimulus is released this month or next, some of the sources added.