Below is the brief near-term outlook of the five key steel products Mysteel shares on a weekly basis, drawing upon the results of related surveys and communication with market participants.
Rebar & wire rod: Market participants expect construction steel prices to hover high over May 25-29, as blast furnace makers may continue to ramp up production while margins remain juicy. Conversely, re-rollers and EAF-based mini mills are prone to trim production to ease the pressure they are feeling from mounting input costs.
Hot-rolled coil: The price may begin to fluctuate over May 25-29 after the marked rises seen last week, as steel mills’ production rose for two straight weeks, albeit still at a relatively low level when compared year-on-year.
Cold-rolled coil: The price may move sideways with modest volatility over May 25-29, as steel mills registered lower production for a fourth successive week through May 22, though accelerated destocking was observed among both mills and traders.
Medium plate: The price may move with small adjustments over May 25-29, as the demand outlook is increasingly uncertain after end-users wrapped up their month-long restocking campaign.
Sections: The price may strengthen over May 25-29 mainly on the support of improved market demand and strong billet pricing. Billet prices in Tangshan, North China’s Hebei province, gained another Yuan 100/MT ($14.0/MT) on week to Yuan 3,270/MT EXW including the 13% VAT as of May 22.
This article has been published under an article exchange agreement between Mysteel Global and SteelMint.
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