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 ease further over December 7-11, as the demand is entering into a traditionally slack season in winter, and some traders may act cautiously and trim their offering prices to sell off some stocks.
Hot-rolled coil: The price is likely to strengthen further in the second week of December, mainly on the support of the active trading and the continuous declines in traders’ stocks in China’s 55 cities, and as of December 3, the total stocks fell for the eighth week, or down another 5.1% on week to 2.9 million tonnes.
Cold-rolled coil: The price is forecast to nudge up in the week ending December 11, as major CRC buyers from home appliances and automaking sectors still appear enthusiastic in procuring, while the domestic steel mills’ supplies to the spot market are shrinking as they are prioritizing supplies to the customers with long-term supply deals.
Medium plate: China’s market participants expect the price to hover high over December 7-11, noting on the domestic steel mills’ list price upward adjustments, though some end-users have adopted a wait-and-see stance on the rising prices.
Sections: The price may stay largely firm in the week to December 11, mainly underpinned by the steadfast offering prices quoted by the steel mills and the latest curbs imposed on the local sintering machines in Tangshan, North China’s Hebei province, which will disrupt supplies of billet, the key feedstock for section re-rollers.
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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