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.
Rebar & wire rod: The prices of these longs may soften over November 8-12, as operations on construction sites in North China have been heavily affected by plummeting temperatures in recent days. Rebar stocks at the 137 Chinese steelmakers under Mysteel’s tracking increased for the third week last week, up 7.6% on week to 2.8 million tonnes as of November 4.
Hot-rolled coil: This price may slip in the week ending November 12, as most end-users have been procuring only for their immediate need, while most traders have been selling off inventory to lower their risks. Meanwhile, stocks pressure is minimal, as of November 4, HRC stocks in the commercial warehouses of China’s 55 cities under Mysteel’s survey had declined for the fourth week by another 2.3% on week to 3.6 million tonnes.
Cold-rolled coil: The price may drop this week, as most traders have been reluctant to replenish coil cold due to the continuous fall in prices. Demand from end-users remains sluggish, with fewer orders in hand.
Medium plate: The price is likely to be generally rangebound over November 8-12, as availability in some regions has been improving, with some plates from mills in North China being transported to South China.
Sections: The price is expected to lose some ground in the week ending November 12, as some steelmakers are willing to trim ex-works prices thanks to lower production costs and limited bookings from traders. On the other hand, the Q235 150mm square billet price in North China’s Tangshan under Mysteel’s assessment stayed unchanged for the second week at Yuan 4,900/t EXW including the VAT as of November 7.
Written by Villanelle Xia, xiayi@mysteel.com
This article has been published under an article exchange agreement between Mysteel Global and SteelMint.
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