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 29-September 2, as traders have taken on a cautious stance of buying, while end-users procure only to meet their immediate demand with tight cashflows. However, the continuing decline in stocks due to low supply from mills may lend some support to the prices.
Rebar stocks at 429 warehouses in 132 Chinese cities under Mysteel’s tracking slipped by 2.5% on week to 7.9 million tonnes as of August 25.
Hot-rolled coil: This price may ease in the week ending September 2, as trading activities in the spot market have been lukewarm amid higher supply from mills.
Cold-rolled coil: The price may be narrowly range-bound this week, as demand from end-users is likely to recover with the end of power rationing. By August 25, CRC stocks at 182 warehouses in 29 Chinese cities under Mysteel’s tracking had slipped for the fourth week by another 0.3% on week to 2.2 million tonnes.
Medium plate: The price is likely to grow modestly over August 29-September 2, as most traders have taken on a bullish sentiment on the prices.
Sections: Prices are expected to soften this week amid bearish market sentiment, though the Q235 150mm square billet price in North China’s Tangshan under Mysteel’s assessment increased by Yuan 80/tonne ($11.6/t) on week at Yuan 3,770/t EXW and including the 13% VAT as of August 28.
Written by Villanelle Xia, xiayi@mysteel.com
This article has been published under an article exchange agreement between Mysteel Global and SteelMint.
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