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 down over March 8-12, as the spot sales volumes have been lower than expected, and the Chinese steel traders have appeared rather cautious amid the rather high steel prices recently.
Hot-rolled coil: The HRC price may spiral up in the week ending March 12, mainly underpinned by recovering demand and the stocks in China’s 55 cities have been rather steady, up merely 0.2% on week to 4.6 million tonnes as of March 4.
Cold-rolled coil: The price is likely to dip in the week to March 12, as the traders are likely to sell off the products in exchange for the margins, and the market sentiment towards the products has appeared relatively negative.
Medium plate: The price may inch up in the second week of March, mainly supported by the robust demand, as well as the declining output with more maintenance works.
Sections: The price is forecast to decline in the week ending March 12, as end-users hold a wait-and-see attitude on the continuing strengthening in spot prices and fewer deals were concluded with the rather high prices.
The room for sections prices softening, however, may be limited, as the price of the Q235 150mm square billet in Tangshan, North China’s Hebei province, gained by Yuan 140/tonne ($21.6/t) on week to Yuan 4,410/t as of March 7.
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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