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 prices may experience a modest downward correction over October 26-30, given the weaker-than-expected demand from the end-users, even though the tight availability may extend into the last week of October.
Hot-rolled coil: The price is likely to soften in the week through October 30, when supplies from the Chinese steel mills will rally with the resumption of rolling capacities after the maintenance outages, while more buyers may adopt a wait-and-see stance on subdued demand and tepid trading.
Cold-rolled coil: Market participants expect a moderate downward correction in the last week of October on the CRC prices, following the softening in most of the key ferrous futures prices towards the end of last week.
Medium plate: The price is forecast to strengthen further over October 26-30, mainly on the widely-shared expectation that demand will show little change while production costs will hover high, as coke price, for example, has risen for the fifth time since mid-August by Yuan 50/tonne.
Sections: The price may spiral downward over October 26-30, as most spot steel traders hold a bearish outlook on the long steel prices and are unlikely to raise offering prices.
This article has been published under an article exchange agreement between Mysteel Global and SteelMint.
Photo: World Steel
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