Below is the brief near-term outlook for five key steel products Mysteel shares on a weekly basis, drawing upon the results of related surveys and communication with Chinese market participants.
Rebar and wire rod: Prices of these longs may be narrowly range-bound over November 7-11, as demand for construction steel may be subdued with the approach of winter and COVID containment measures observed by some construction sites across the country.
Besides, most traders are willing to sell off some stocks to reduce risks. Accordingly, rebar stocks at 429 warehouses in 132 Chinese cities under Mysteel’s tracking declined by 5.6% on week to 6.2 million tonnes as of November 3.
Hot-rolled coil: This price may decline modestly in the week ending November 11, as most end-users take on a cautious stance of buying, while relatively high supply from mills continues to weigh on the prices.
Cold-rolled coil: The price may ease this week, as only those end-users with urgent needs of CRC are willing to take some tonnage. Moreover, high supply from mills continues to weigh on the prices. As of November 2, CRC output among 29 Chinese steelmakers under Mysteel’s tracking stood at 838,100 tonnes, up by 0.4% on week.
Medium plate: The price is likely to fluctuate in a small range over November 7-11, as most traders are willing to sell at lower prices to facilitate sales. However, the decline in supply may lend some support to the prices. As of November 2, plate output at 37 Chinese steelmakers under Mysteel’s tracking was assessed at 1.4 million tonnes, slipping by 26,200 tonnes on week.
Sections: Prices are expected to soften this week, as high stocks at mills will keep weighing on the prices, though the Q235 150mm square billet price in North China’s Tangshan under Mysteel’s assessment rose Yuan 60/tonne ($8.3/t) on week to Yuan 3,510/t EXW and including the 13% VAT as of November 6.
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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