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 two long steel products may be volatile at low levels over April 8-12, with their output fluctuating slightly and demand displaying stability in the near term, while market participants’ confidence in the steel market outlook remains flagging.
Hot-rolled coil: This price is expected to soften in the week ending April 12, as end-users are not keen to replenish stocks, while HRC output may persist high. An East China-based source said the market has been pressured by tepid spot trading, and many traders have adopted a bearish stance.
Cold-rolled coil: This price may weaken in the week through April 12, with production staying high and demand not changing greatly.
Output of cold-rolled coil among the 29 mills Mysteel surveys nationwide may hover around 860,000 tonnes this week as these mills have no plan for maintenance.
Medium plate: This price will likely be narrowly rangebound over April 8-12. A North China-based source shared that steel mills’ enthusiasm for ramping up output would be firm on improved margins, but end-users may remain cautious about procurement due to the lack of confidence.
Sections: The sections’ prices may perch low over April 8-12, with re-rollers not inclined to lift production on the brink of breakeven and preferring to lower their stocks. Meanwhile, demand from end-users is rising at a slow pace and is unlikely to improve markedly in the near term.
Note: This article has been written in accordance with an article exchange agreement between MySteel Global and BigMint.