Below is the brief near-term outlook of the five key steel products Mysteel shares on a weekly basis, drawing upon the results of related surveys and communication with market participants.
Rebar & wire rod: Market participants expect long steel prices to correct downward moderately over June 1-5, as stocks at the steel mills reversed up 4.6% on week over May 25-29 after declining for 11 consecutive weeks since mid-March, while steel stocks at the traders reduced further albeit at a much slower pace.
Hot-rolled coil: The price may edge up further over June 1-5, as stocks at both the mills and the traders fell further over May 25-29, and production by the mills still hovered low compared to a year ago.
Cold-rolled coil: The CRC price may strengthen further over June 1-5, following the uptrend set by the HRC, as the downtrends in both the production and stocks at the steel mills may extend into the week ended June 5.
Medium plate: The price may inch up over June 1-5, as some steel mills raised offering prices in the last week of May, and Tangshan of North China’s Hebei province will reportedly launch a new round of steel production curbing over June 1-30, stirring up the concern on supply in the short term.
Sections: The price may experience less volatility over June 1-5, mainly on the support of improved market sentiment and strong billet pricing. The price of the Q235 150mm square billet in Tangshan gained another Yuan 10/MT (USD 1.4/MT) on week to Yuan 3,280/MT EXW including the 13% VAT as of May 29.
This article has been published under an article exchange agreement between Mysteel Global and SteelMint.
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