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. The sharing has been delayed until January 4 because of the New Year holiday over January 1-3.
Rebar & wire rod: The prices of these longs may be narrowly rangebound over January 4-7, as demand from China’s construction sector has subsided with cold winter weather and the resurgence of COVID-19 cases across the country, and traders stayed on the sidelines of buying on the anticipation of lower steel prices.
By December 30, rebar stocks at the commercial warehouses in China’s 132 cities under Mysteel’s tracking had declined for the 12th week though at a slower pace, down by 0.2% to 5.2 million tonnes.
Hot-rolled coil: This price may ease in the week ending January 7, as output is likely to pick up amid sluggish demand from end-users. As of December 29, HRC output among the 37 steel producers under Mysteel’s tracking reversed from just one week of decline, up by 2.7% on week to 3 million tonnes.
Cold-rolled coil: The price may ease this week, as end-users only procure to fulfill their immediate needs during the slack consumption season, and most traders have offloaded the volume to minimize the risks.
Medium plate: The price is likely to soften over January 4-7, as spot trading has remained lukewarm while supply from steel producers has been growing. By December 29, plate output among the 37 steelmakers under Mysteel’s tracking climbed by 1.4% on week to 1.3 million tonnes.
Section: The price is expected to decline in the week ending January 7, as most traders have been cautious about building up their inventories amid winter restocking. The price of the Q235 150mm square billet in Tangshan, North China’s Hebei province, eased by Yuan 100/tonne ($15.7/t) on week to reach Yuan 4,240/t EXW including the 13% VAT as of January 3, according to Mysteel’s assessment.
Written by Villanelle Xia, xiayi@mysteel.com
This article has been published under an article exchange agreement between Mysteel Global and SteelMint.
Leave a Reply