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 of these long steel products may spiral up over February 22-26, partly due to the high production costs among the Chinese steel mills and high-priced inventories in traders’ warehouses. Besides, traders appear in no hurry to sell, just waiting for the spree of demand when most of the construction sites in China return to normal operations after February 26, the Lantern Festival that marks the end of the Chinese New Year celebration in China’s tradition.
Hot-rolled coil: The HRC price may move up in the week ending February 26, mainly underpinned by recovery in demand and output declines, partly due to the restrictions on the steel industry in Tangshan to be effective on February 23. HRC stocks in China’s 55 cities gained 21.8% from February 4 to 3.9 million tonnes as of February 17.
Cold-rolled coil: The price is likely to nudge up over February 22-26, supported by high production costs and the anticipated recovery in consumption by the end-users.
Medium plate: The price may spiral up in the last week of February, as traders, with many running at low stocks, are likely to replenish some volumes.
Sections: The prices are expected to strengthen in the week ending February 26, as most integrated mills and re-rollers raised their list prices in response to the ongoing restrictions on the steel mills in Tangshan and traders’ higher offering prices. The price of the Q235 150mm square billet in Tangshan, a barometer of China’s steel market sentiment, surged by Yuan 330/tonne ($51/t) from February 17 to Yuan 4,180/t as of February 21.
Written by Yi Xia, xiayi@mysteel.com
This article has been published under an article exchange agreement between Mysteel Global and SteelMint.
Photo: The Wall Street Journal
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