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 grow over March 6-10, as demand from end-users are likely to pick up with improved market sentiment.
Besides, rebar stocks at the warehouses declined for the second week, lending some support to the prices. As of March 2, rebar stocks at the 429 warehouses in 132 Chinese cities under Mysteel’s tracking stood at 13 million tonnes, down by 0.7% on week.
Hot-rolled coil: This price may gain in the week ending March 10, as demand from end-users has been growing with better sentiment in the market.
Besides, the continuous decline in stocks also gave a boost to prices. The HRC stocks at the 194 warehouses in 55 Chinese cities under Mysteel’s tracking lost 2.6% on week to 4.2 million tonnes as of March 2.
Cold-rolled coil: The price may be narrowly range-bound this week, as the spot trading volume has been lower than expected. However, high production costs may lend some support to the prices.
Medium plate: The price may strengthen this week, as end-users tend to buy more plates amid better market sentiment.
Besides, plate stocks at the warehouses dropped for the third week, giving a boost to the prices. As of March 2, plate stocks at the 217 warehouses in 65 Chinese cities slipped by 2.8% on week to 2.5 million tonnes.
Sections: Prices may increase over March 6-10, as many steel mills have firmed or lifted their offering prices for sections on high production costs. Besides, the anticipation of better demand from end-users may also boost the prices.
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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