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 the prices to soften modestly over June 8-12, as end-users in East and South China have slowed down procurement in the rainy season, suggesting the wavering in demand in the coming days.
Hot-rolled coil: The price is estimated to experience soft undulations over June 8-12, as the ramp-up of production at the steel mills may impose pressure, while the continuing destocking at both the mills and the traders will lend some support.
Cold-rolled coil: The price may stay rangebound over June 8-12, as spot demand appeared tepid over June 1-5, though the ordering volumes from long-term customers seemed healthy, according to the steel mills when sharing their June production planning.
Medium plate: The price is likely to inch down over June 8-12, as some low-priced imported materials are expected to flow into the Chinese market in mid- and late June.
Sections: The price may strengthen further over June 8-12, mainly on the surging iron ore costs and billet prices, as the price of the Q235 150mm square billet in Tangshan, for example, rose another Yuan 40/MT (USD 5.6/MT) on week to Yuan 3,320/MT EXW including the 13% VAT as of June 5, or a 5-month high.
This article has been published under an article exchange agreement between Mysteel Global and SteelMint.
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