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 gain ground over March 1-5, not only due to strengthening demand from end-users, but also because of positive sentiment in the market. Most building contractors have now resumed work on their projects, much sooner this year than after previous Chinese New Year breaks.
Hot-rolled coil: The HRC price may strengthen during the week ending March 5, mainly underpinned by recovering demand, as end-users re-started production after the holiday earlier than usual. HRC stocks in China’s 55 cities have risen, jumping 16.4% on week to 4.5 million tonnes as of February 25.
Cold-rolled coil: The price is likely to nudge up in the week to March 5, supported by strong demand from end-users, as most have recommenced operations lately.
Medium plate: The price may hover in the first week of March. Despite the revival in demand, traders are seen selling off products to enjoy the healthy profit margins available.
Sections: The price will likely hover this week. Billet prices rose Yuan 210/tonne ($32.5/t) over February 18-28 and end-users are refusing mill demands to pay more. Fewer semis were sold last week. As of February 28, the Q235 150mm square billet price in Tangshan had increased by Yuan 90/t on week to Yuan 4,270/t.
Written by Yi Xia, xiayi@mysteel.com
This article has been published under an article exchange agreement between Mysteel Global and SteelMint.
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