- Longs prices to gain amid improved sentimen
- HRC tags to trend down amid cautious demand
Mysteel Global: 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 are expected to strengthen during the week to 11 July, amid an improvement in market fundamentals. Meanwhile, more traders are holding onto their offers following a recovery in sentiment.
Hot-rolled coil (HRC): HRC prices are forecast to fluctuate downward in the week through 11 July, due to the imbalance between production and demand. Actual demand remains subdued in the typical off-season for steel consumption, and most end-users stay cautious about procurement, considering the ample supply of this flat steel in the market.
HRC stocks at commercial warehouses in 33 cities Mysteel tracks nationwide rose by 1.4% or 36,700 tonnes (t) w-o-w to 2.67 million tonnes (mnt) as of 3 July.
Cold-rolled coil (CRC): CRC prices are likely to be narrowly range-bound in the week ending 11 July. The demand lull will continue to restrain the prices, while CRC output among the 29 steel mills sampled by Mysteel may hover high at 870,000-880,000 t this week.
Medium plate: Prices of medium plates may be volatile within a limited range during 7-11 July. The persistently high production, weak demand, plus inventory build-ups at some traders could weigh on market sentiment and cause volatility in prices, according to a North Chinabased market source.
The output of medium plate among the 37 producers Mysteel follows nationwide increased for a third straight week over 26 June-2 July, rising by 0.3% or 4,800 t w-o-w to 1.62 mnt.
Sections: Section prices may trend upwards this week, mainly propped up by falling output and resilient raw materials prices. Some steel mills have suspended operations for maintenance, leading to a reduction in the output of steel sections in the short term. However, sources caution that downstream demand remains low despite a modest recovery last week.
Note: This article has been written in accordance with a content exchange agreement between MySteel Global and BigMint.
Leave a Reply