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 stay rangebound over June 15-19, as the Chinese steel mills had been maintaining high output in the week ended June 12, while possible rainfalls in South and East China this week may dampen the demand from end-users, though both billet and steel prices have remained high.
Hot-rolled coil:The price is estimated to strengthen over June 15-19, as steel mills will not be able to run at high capacity utilization rate with their planned maintenance, while the continuing sell-offs by the traders may lend some support to spot pricing.
Cold-rolled coil:The price may hover high over June 15-19, as Baoshan Iron and Steel, China’s leading flat steel maker, announced on June 9 to hike its list prices for cold-rolled flat products by Yuan 280/tonne ($39.4/t) on average, thus providing a solid footing for CRC prices.
Medium plate:The price is likely to undulate modestly over June 15-19, as arrivals of some lower-priced imported materials started to weigh on the Chinese market over June 8-12, although demand from the end-users seemed relatively sustainable for the time being.
Sections:The price may lose some steam over June 15-19, and most of the end-users have taken a wait-and-see stance in the middle of the ongoing restrictions among the steel mills in Tangshan, North China’s Hebei province on their sintering, pelletizing and blast furnaces for the whole month of June.
This article has been published under an article exchange agreement between Mysteel Global and SteelMint.
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