Below is the brief near-term outlook for the 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 these longs may slip during August 22-26, as demand has been poor from the high temperatures in many parts of China and tight cashflow issues with end-users. Higher longs output from mills has also weighed on prices, as rebar output among the 137 steelmakers under Mysteel’s tracking had increased by 4.9% on week to 2.65 million tonnes as of August 17.
Hot-rolled coil: This price may ease in the week ending August 26, as supply from mills is likely to rise because of the improvement in profit margins. Demand from end-users has been dull, however.
Cold-rolled coil: The price may fluctuate in a narrow range this week, as demand from end-users has been recovering, while most traders have adopted a cautious stance when buying. By August 18, CRC stocks at the 182 warehouses in 29 Chinese cities under Mysteel’s tracking stood at a relatively high level of 2.2 million tonnes, despite an on-week decline of 14,600 tonnes.
Medium plate: The price is likely to slip over August 22-26, as spot trading volume has been lackluster. By August 17, plate stocks at the 37 steelmakers under Mysteel’s tracking were assessed at 803,600 tonnes, up 19,400 tonnes.
Sections: Prices are expected to soften this week, reflecting the uptick in supply from mills and an accumulation of stocks at commercial warehouses. As of August 21, the Q235 150mm square billet price in North China’s Tangshan had slipped by Yuan 110/tonne ($16.1/t) on week at Yuan 3,690/t EXW and including the 13% VAT, according to Mysteel’s assessment.
Written by Villanelle Xia, xiayi@mysteel.com
Note: This article has been written in accordance with an article exchange agreement between Mysteel Global and SteelMint.
Leave a Reply