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 spiral down over December 14-18, as the end-users from construction sector are expected to further trim procurement when temperatures drop below zero degree Celsius in most parts of North China.
Hot-rolled coil: The price is likely to strengthen further in the third week of December, mainly on the support of the rising trading volume and the continuous declines in the traders’ stocks in China’s 55 cities, which fell for the ninth week as of December 10, down another 8.6% on week to 2.6 million tonnes.
Cold-rolled coil: Following marked rises of last week, the price is forecast to hover high in the week over December 14-18, primarily underpinned by the latest pricing policy issued by Bashan Iron & Steel Co on December 9, as the country’s leading steel mill and a crucial flat steel producer raised its CRC list prices by Yuan 500/tonne ($76.4/t) for January sales.
Medium plate: The price may retreat moderately in the week to December 18, as the market is estimated to see more profit-taking selloffs when prices have reached a comparatively lucrative level.
Sections: Section price is likely to stay largely steady over December 14-18 after re-rollers downsized their deliveries to the spot market last week, which may help to ease the pressure on those traders with high inventories, lending support to the prices.
Written by Zach Wang, wangxb@mysteel.com
This article has been published under an article exchange agreement between Mysteel Global and SteelMint.
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