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 & wire rod: Prices of these longs may lose some ground over February 6-10, as many end-users have adopted a cautious stance on buying.
Besides, high rebar stocks piled at commercial warehouses also weighed on the prices. Rebar stocks at 429 warehouses in 132 Chinese cities under Mysteel’s tracking increased by 17.2% on week to 11.5 million tonnes as of February 2.
Hot-rolled coil: This price may be narrowly-rangebound in the week ending February 10, as the accumulation of HRC stocks at commercial warehouses has been higher than expected, which may dampen the prices.
Cold-rolled coil: The price may decline modestly this week, as most traders are willing to work off some CRC stocks even at lower prices.
Besides, the CRC output will grow with more mills’ resumption of operations. The total CRC output among 29 Chinese steelmakers Mysteel tracks increased by 10,500 tonnes on week to 782,600 tonnes as of February 1.
Medium plate: The price may slip over February 6-10, as the accumulation of plate stocks at commercial warehouses – mainly caused by mills’ excessive supply – have weighed on the prices. As of February 2, the total plate stocks at 217 warehouses in 65 Chinese cities under Mysteel’s tracking recorded 2.8 million tonnes, jumping by 17% on week.
Sections: Prices may lose some steam this week, as many traders have compromised on prices to offload some tonnage, while most end-users have procured only to meet immediate demand.
Written by Villanelle Xia, xiayi@mysteel.com
Edited by Alyssa Ren, rentingting@mysteel.com
Note: This article has been written in accordance with an article exchange agreement between Mysteel Global and SteelMint.
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