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 may stay firm in general over July 13-17, as mills’ production of construction steel products reversed down 3% on week to 5.5 mn t on July 9, as some Chinese steel mills have been on maintenance or disciplined their production since last week.
Hot-rolled coil: Market participants expect the price to be rangebound over July 13-17, citing a modest recovery in demand over the week ending July 10 and minimal chances of any sizable production increment for the rest of July.
Cold-rolled coil: The price may continue to hover high over July 13-17, mainly on the support of a reverse-down detected at the traders’ inventories and a slow-down in Chinese steel mills’ production ramp-up in the week through July 10.
Medium plate: The price is estimated to inch down over July 13-17, as the steel mills’ production has been recovering with the completion of scheduled maintenance, which may impose pressure on the spot pricing.
Sections: The price may strengthen further over July 13-17, primarily underpinned by the surging costs in iron ore and billet. The Q235 150mm square billet in Tangshan city, for example, gained Yuan 70/t ($10/t) on week to Yuan 3,380/t EXW including the 13% VAT as of July 10, or a 7-month high.
This article has been published under an article exchange agreement between Mysteel Global and SteelMint.
Photo Credit – World Steel
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