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 lose some steam over November 23-27, as the cold weather sweeping North China will dampen the regional demand and some steel products, thus, may be diverted to the southern part of the country, imposing some pressure on the steel prices in South China.
Hot-rolled coil: The price is likely to hover high in the last week of November, mainly on the support of the solid demand for HRC as the Chinese manufacturing sectors have been receiving more orders for their products from overseas.
Cold-rolled coil: China’s market participants expect the price to strengthen in the week ending November 27, citing continuous declines on the traders’ inventories in 29 cities, which dropped 1.8% for a sixth consecutive week to 1.6 million tonnes as of November 19.
Medium plate: The upward momentum may ease over November 23-27, as the end-users have showed increasing reluctancy to buy since the steel mills raised their offering prices.
Sections: The price is expected to stay largely firm in the week to November 27, mainly underpinned by the bullish billet price, as that of the Q235 150mm square billet in Tangshan, the feedstock for re-rollers, grew another Yuan 50/tonne ($7.6/t) on week to Yuan 3,630/t EXW including the 13% VAT on November 20.
Written by Zach Wang, wangxb@mysteel.com
This article has been published under an article exchange agreement between Mysteel Global and SteelMint.
Photo: World Steel Association
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