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 the Chinese market participants. The sharing has been delayed until June 15 because of the public holiday in China on Monday.
Rebar & wire rod: The prices of these longs may slip over June 15-18, mainly driven by the weakening demand, as the market has entered a slack consumption season. Rebar stocks in the commercial warehouses in China’s 132 cities had remained largely unchanged, down merely 0.07% on week to 10.6 million tonnes as of June 10, though having decreased for the 14th week.
Hot-rolled coil: The flat steel price may lose some steam in the week ending June 18, as end-users haven’t been active in buying, and as of June 10, HRC stocks in the commercial warehouses in China’s 55 cities increased for the second week by 0.6% on week to 3.5 million tonnes.
Cold-rolled coil: The price is likely to decline modestly in the week to June 18, as demand from end-users such as automakers is unlikely to pick up with the shortage of chips and the slow-down in sales, as reported.
Medium plate: The price may slip over June 15-18, as most traders have taken on a cautious stance in stocking up.
Sections: The price is forecast to grow in the week ending June 18, as most mills are likely to raise their offering prices with high production costs. As of June 13, the price of the Q235 150mm square billet in Tangshan, North China’s Hebei province, gained another Yuan 40/tonne ($6.3/t) on week to Yuan 5,060 /t.
Written by Villanelle Xia, xiayi@mysteel.com
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