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 move down moderately over September 21-25, as the tepid pre-holiday demand dampened the domestic steel market enthusiasm in the third week of September, and steel mills in the provinces of Hebei and Jiangsu are considering ramping up their output by another 50,000 tonnes this week, which may impose more downward pressure on the spot steel prices.
Hot-rolled coil: The price is forecast to edge down further this week, mainly as signs of a slowdown in the demand from the end-users have been detected and traders have been with growing willingness to sell off inventories in exchange for cash flows.
Cold-rolled coil: Market expects a moderate softening in the prices over September 21-25, citing the weakness in the steel futures market in general in the prior week coupled with end-users’ conservative approach of buying to fulfill immediate needs only.
Medium plate: The price is expected to spiral up over September 21-25, as it may source some support from higher slab costs and thus stand a chance of strengthening after weakening for two consecutive weeks.
Sections: The price may level off over September 21-25, as the price of billet, the key feedstock for section re-rollers, slowed down along the downtrend last week after having nosedived Yuan 80/tonne in the prior week ended September 11. The price of Q235 150mm square billet in Tangshan, for example, fell but by just Yuan 20/t on week to Yuan 3,380/t EXW including the 13% VAT on September 18.
This article has been published under an article exchange agreement between Mysteel Global and SteelMint.
Photo: World Steel
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