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 ease over October 31-November 4, as most traders opt to sell off stocks even at lower prices to reduce risks. Rebar stocks at 429 warehouses in 132 Chinese cities under Mysteel’s tracking declined by 212,000 tonnes or 3.2% on week to 6.5 million tonnes as of October 27.
Hot-rolled coil: This price may soften in the week ending November 4, as most end-users choose to stay on the sidelines rather than buying on bearish sentiment, while production from mills still hovers high.
Cold-rolled coil: The price may slip this week, as most end-users procure only to meet their immediate demand. Besides, high supply from mills continues to weigh on the prices. As of October 26, CRC output among 29 Chinese steelmakers under Mysteel’s tracking stood at 834,400 tonnes, higher by 0.6% on week.
Medium plate: The price is likely to lose some ground over October 31-November 4, as most traders are reluctant to take some tonnage and inclined to destock instead. Besides, high supply from mills has also been adding pressure on the prices. As of October 26, plate output at 27 Chinese steelmakers under Mysteel’s tracking was assessed at 1.4 million tonnes, despite a marginal decline of 2,400 tonnes on week.
Sections: Prices are expected to drop this week, as the accumulation of stocks and sluggish demand from end-users keep weighing on the prices. The Q235 150mm square billet price in North China’s Tangshan under Mysteel’s assessment slumped by Yuan 180/tonne ($24.7/t) on week to Yuan 3,450/t EXW and including the 13% VAT as of October 30.
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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