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 longs may slip over October 24-28, as most traders are willing to sell off some stocks even at lower prices on bearish market sentiment. Rebar stocks at 429 warehouses in 132 Chinese cities under Mysteel’s tracking declined by 368,900 tonnes or 5.2% on week to 6.7 million tonnes as of October 20.
Hot-rolled coil: This price may ease in the week ending October 28, as most end-users still choose to stay on the sidelines rather than buying, while most traders have been reluctant to take some tonnage on a cautious stance.
Cold-rolled coil: The price may soften this week, as most end-users are showing little interest in replenishing stocks, given few orders at hand. Besides, high output from mills keeps weighing on the prices. As of October 19, CRC output among Chinese steelmakers under Mysteel’s tracking stood at 829,300 tonnes, higher by 1.3% on week.
Medium plate: The price is likely to lose some steam over October 24-28, as most traders have been willing to compromise on prices to facilitate sales. As of October 20, plate stocks at 217 warehouses in 65 Chinese cities under Mysteel’s tracking dropped by 49,700 tonnes on week to 2.1 million tonnes.
Sections: Prices are expected to drop this week, as the accumulation of stocks at both steelmakers and commercial warehouses continues to weigh on the prices. The Q235 150mm square billet price in North China’s Tangshan under Mysteel’s assessment stayed unchanged on week to Yuan 3,630/tonne ($499.3/t) EXW and including the 13% VAT as of October 23.
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.
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