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 of these longs may spiral up over April 6-9, mainly underpinned by the robust demand and lower stocks, as rebar stocks in the commercial warehouses in China’s 132 cities declined for the fourth week as of April 1, down another 4.8% on week to 16.3 million tonnes.
Hot-rolled coil: The HRC price may move up in the week ending April 9, mainly driven by strengthening demand and the declining stocks, as by April 1, HRC stocks in the commercial warehouse in China’s 55 cities fell for the fourth week by another 5% on week to 3.8 million tonnes.
Cold-rolled coil: The price is likely to hover in the week to April 9, as stocks have been reducing but shortage of auto chips may force global automakers to slow down their production pace.
Medium plate: The price may strengthen over April 6-9, as traders will try to lock deals at higher prices to absorb their higher replenishment costs.
Sections: The price is forecast to fluctuate in the week ending April 9, as most end-users may just buy to fulfill immediate needs on the rather high prices, though the support from the billet may remain, as the price of the Q235 150mm square billet in Tangshan, North China’s Hebei province, jumped by Yuan 250/tonne ($38/t) on week to Yuan 5,020/t as of April 5, or a new 12.5-year high.
Written by Yi Xia, xiayi@mysteel.com
This article has been published under an article exchange agreement between Mysteel Global and SteelMint.
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