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: The price may stay rangebound over July 20-24, as spot trading volume recovered modestly on the strengthening in the Shanghai Futures Exchange in the week ended July 17, although end-user demand was still lackluster amid the prolonged rainy season.
Hot-rolled coil: Market participants expect the price to lose some steam over July 20-24, citing a 4.5% on-week rally seen in the Chinese steel mills’ steel inventories by July 16 and a 1.3% reverse-up detected in their weekly production by July 15.
Cold-rolled coil: The price may still hover high over July 20-24, mainly propped up by the firm production costs and continued declines in stocks at both the Chinese steel mills and the traders in the week ended July 16.
Medium plate: The price is estimated to inch down over July 20-24, as the steel mills’ production has been recovering with the completion of scheduled maintenance, which, along with more sale-offs by traders for margins, may impose pressure on the spot pricing.
Sections: The price may strengthen amid choppy consolidations over July 20-24, mainly on the support of the surging costs in iron ore and billet. The Q235 150mm square billet in Tangshan city, for example, gained another Yuan 30/tonne ($4.3/t) on week to Yuan 3,410/t EXW including the 13% VAT as of July 17, or a new seven-month high.
This article has been published under an article exchange agreement between Mysteel Global and SteelMint.
Photo Credit – World Steel
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