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 over June 6-10, mainly underpinned by high production costs and improved market sentiment. Meanwhile, rebar stocks at 429 warehouses in 132 Chinese cities under Mysteel’s survey edged up by 11,200 tonnes on week to 11.8 million tonnes as of June 2.
Hot-rolled coil: This price may be narrowly range-bound in the week ending June 10, as some traders were willing to sell off some stocks to secure sufficient cash flow. As of June 2, HRC stocks at 194 warehouses in 55 Chinese cities under Mysteel’s tracking edged down 1,500 tonnes on week to 3.9 million tonnes.
Cold-rolled coil: The price may grow this week, as demand from end-users has been picking up with the relaxation of COVID restrictions among end-users in many Chinese cities.
Medium plate: The price is likely to gain over June 6-10, as the spot trading has been picking up with the logistics market back to normal. As of June 2, plate output at 217 warehouses in 65 Chinese cities under Mysteel’s tracking eased by 4.2% on week to 2.2 million tonnes.
Section: This price is expected to increase this week, as demand from end-users has been growing with relieved pandemic situation. As of June 5, the Q235 150mm square billet price in North China’s Tangshan edged up by Yuan 30/tonne ($4.5/t) from May 29 to Yuan 4,500/t EXW and including the 13% VAT, 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.
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