Below is the brief near-term outlook for the five key steel products Mysteel shares on a weekly basis, drawing upon the results of related surveys and communication with Chinese market participants.
Rebar & wire rod: The prices of these longs may slip over July 18-22, as demand from end-users has been dull amid high temperatures in some regions across China and the resurgence of COVID-19 cases. Besides, end-users and traders have held a bearish sentiment on the prices, with most showing little interest in buying.
Hot-rolled coil: This price may fall in the week ending July 22, as stocks at traders have been mounting with sluggish demand from end-users and high supply from mills. By July 14, HRC output at 194 warehouses in China’s 55 cities under Mysteel’s tracking stood at 4.3 million tonnes, surging by 102,400 tonnes on week.
Cold-rolled coil: The price may soften this week, as most end-users have chosen to stay on the sidelines. Meanwhile, some traders have been willing to sell off some stocks at lower prices to ensure sufficient cash flows.
Medium plate: The price is likely to drop over July 18-22, as high output from mills continues to weigh on on the prices when demand from end-users remains lackluster. As of July 13, plate output at 37 steelmakers under Mysteel’s tracking stood at 1.4 million tonnes, despite an on-week decline of 19,200 tonnes.
Sections: The prices are expected to soften this week, as high stocks at both mills and traders have further dampened the prices. As of July 17, the Q235 150mm square billet price in North China’s Tangshan had plunged by Yuan 320/tonne ($47.3/t) on week to Yuan 3,500/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.
Leave a Reply