Below is the brief near-term outlook of five major carbon steel products Mysteel shares on a weekly basis, drawing upon the results of related surveys and communication with the Chinese market participants.
Rebar & wire rod: The prices of these longs may strengthen over September 13-17, as demand from end-users and traders is expected to improve, and rebar stocks in the commercial warehouses of China’s 132 cities, for example, declined for the sixth consecutive week as of September 9, down for another 3% to about 11 million tonnes in total.
Hot-rolled coil: This price may grow modestly in the week ending September 17, mainly on the support of lower stocks at the traders, as by September 9, HRC stocks in the commercial warehouses of China’s 55 cities declined for the third week by another 1.6% on week to 4 million tonnes.
Cold-rolled coil: The price is likely to be narrowly rangebound in the week to September 17, as limited output with some mills’ maintenance schedules will offset the adverse impact of the lackluster demand when end-users have opted to stay on the sideline, looking for clearer signs in the price.
Medium plate: The price is anticipated to move up over September 13-17, mainly due to limited output while anticipated better demand from end-users for structure steel, shipbuilding and machinery manufacturing.
Sections: The price is expected to inch up in the week ending September 17, as demand from end-users has been growing though slowly, and the price of the Q235 150mm square billet in Tangshan of North China’s Hebei, the semis for re-rollers, had been up for the third week as of September 12, gaining another Yuan 140/tonne ($21.7/t) to Yuan 5,220/t EXW including the 13% VAT.
Written by Villanelle Xia, xiayi@mysteel.com
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