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 prices may strengthen over November 2-6, mainly on the support of the bullish trend re-emerging in the ferrous futures market in the last week of October, as well as the consistent reduction in long steel inventories. Rebar stockpiles at the traders, for example, declined 7.6% on week to 6.7 million tonnes as of October 29, or the third consecutive week since October 9.
Hot-rolled coil: The price is likely to gain a solid foothold in the first week of November, as the Chinese steel mills have not been running at their full capacities, which will limit the pressure on the spot prices from the supply side. End-users in the manufacturing sector, on the other hand, have lately been blessed with a rally in export orders, which, most probably, will in turn translate into decent demand for HRC.
Cold-rolled coil: China’s market participants expect firmness in the CRC prices in the opening week of November, citing the tight availability in some regional markets and the healthy demand from end-users in automaking and home appliance sectors.
Medium plate: The price may linger in modest consolidations over November 2-6, as inventories at the traders have been rising on the weak demand from the end-users, and plate mills with limited booking backlogs may attempt to boost sales with lower offering prices.
Sections: The price may stay sullen over November 2-6 despite that the Tangshan city government in North China’s Hebei province has imposed again curbing on the operations of the local re-rollers, mainly because of the tepid demand and a wait-and-see approach adopted by most traders.
This article has been published under an article exchange agreement between Mysteel Global and SteelMint.
Image: World Steel
Leave a Reply