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: The prices of two long steel items may be largely stable over 22-26 January. An East China’s Guangdong-based market source said that despite some positive macroeconomic factors, the fundamentals of the domestic steel market may turn weak in the near-term with market participants gradually leaving the market for the coming Chinese New Year holiday, and the long steel prices may enter a stable transition period.
Hot-rolled coil: This price may slightly decrease in the week ending 26 January, as the overall market sentiment may remain cautious, though the market will still be underpinned by some restocking needs from end-users.
Last week, stocks of hot-rolled coils at retail warehouses mounted albeit at a limited pace, with the tonnage at traders in 33 cities Mysteel tracks edging up 19,100 tonnes on week to 2.23 million tonnes by 18 January.
Cold-rolled coil: This price is likely to be narrowly range-bound in the week through 26 January. The demand for cold-rolled coils may decline slightly with the holiday drawing near while some mills may commence maintenance on their facilities this week.
Medium plate: This price is expected to be mildly volatile over 22-26 January. A market insider in northern China said many traders have appeared inactive in winter restocking and demand weakens further, while steelmakers are not keen to ramp up production.
Sections: The sections’ prices are estimated to move up over 22-26 January, as end-users may stock up some quantities in advance to secure their production for orders after the long holiday. Meanwhile, some steel mills have overhaul plans as their stocks of sections at yards persist high now.
Note: This article has been written in accordance with an article exchange agreement between Mysteel Global and SteelMint.
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