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: The price is estimated to spiral down further over June 29-July 3, as most end-users have shown the tendency since around China’s Dragon Boat Festival over June 25-27 to procure only for their immediate needs, and rebar inventories held by traders in 35 Chinese cities edged up for the first time over June 19-24 after 14 weeks of consecutive declines, up 1.6% on week.
Hot-rolled coil: Market participants expect the price to be rangebound or hover low in the week ending July 3, citing a slow-down in de-stocking among traders and a week-on-week buildup in the inventories at the Chinese steel mills during the festive week.
Cold-rolled coil: The price may continue to hover high over June 29-July 3, as some Chinese flat steel mills have returned their focus back to direct sales to end-users than spot sales to traders, thus relieving the pressure of stocks on the latter.
Medium plate: The price is likely to perch at its nearly one-year high over June 29-July 3, as high production costs and steel mills’ insistence on their offering prices will be lending support.
Sections: The price may hold the ground over June 29-July 3, mainly on the support of the latest sintering halts starting June 27 among local steel mills in Tangshan city, North China’s Hebei province for air pollution control until the end of June and strong billet pricing in the local market.
This article has been published under an article exchange agreement between Mysteel Global and SteelMint.
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