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 the Chinese market participants.
Rebar & wire rod: The prices of these longs may strengthen further over May 10-14, mainly underpinned by the robust demand and lower stocks. Rebar stocks in the commercial warehouses in China’s 132 cities under Mysteel’s survey, for example, declined for the ninth week as of May 6, though down at a slower pace of 1.5% on week to 12.7 million tonnes.
Hot-rolled coil: The flat steel price may grow modestly in the week ending May 14, as most end-users are likely to replenish stocks after the Labour Day holiday, while by May 6, HRC in the commercial warehouses in China’s 55 cities rebounded after eight weeks of declines, gaining 7.4% on week to 3.7 million tonnes.
Cold-rolled coil: The price is likely to move up in the week to May 14, as most traders are optimistic on further price gains, and some have been holding off selling products as a result.
Medium plate: The price may spiral up over May 10-14, as end-users have agreed on the surge in prices, and spot trading volume has been growing in tandem with price gains.
Sections: The price is forecast to soar in the week ending May 14, mainly prompted by limited supply and high production costs, as the price of the Q235 150mm square billet in Tangshan, North China’s Hebei province, surged Yuan 245/tonne ($38/t) from April 30 to Yuan 5,500 /t as of May 9, or reaching an almost 13-year high.
Written by Villanelle Xia, xiayi@mysteel.com
This article has been published under an article exchange agreement between Mysteel Global and SteelMint.
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