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 climb over August 15-19, as the continuous decline in stocks have lent some support to the prices. As of August 11, rebar stocks at 429 warehouses in 132 Chinese cities under Mysteel’s tracking had declined for the eighth week by another 4.4% to 8.5 million tonnes.
Hot-rolled coil: This price may slip in the week ending August 19, as supply from mills is likely to grow, given better profit margins they could currently earn. By August 10, HRC output at 37 Chinese steelmakers under Mysteel’s tracking was at 3 million tonnes, up 7,300 tonnes on week.
Cold-rolled coil: The price may be narrowly range-bound this week, as demand from end-users has been recovering, but remains sluggish in general. By August 11, CRC stocks at 182 warehouses in 29 Chinese cities under Mysteel’s tracking stood at a relatively high level of 2.2 million tonnes, despite an on-week decline of 36,500 tonnes.
Medium plate: The price is likely to grow over August 15-19, as high production costs have bolstered the prices despite dull demand from end-users amid high summer temperatures. By August 11, plate stocks at 217 warehouses in 65 Chinese cities under Mysteel’s tracking stood at 2.3 million tonnes, up 2.6% on week.
Sections: The prices are expected to narrowly fluctuate this week, as spot trading remains lackluster amid high temperatures and the slack period for steel consumption. As of August 14, the Q235 150mm square billet price in North China’s Tangshan grew by Yuan 40/tonne ($5.9/t) on week at Yuan 3,800/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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