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 rebound over November 22-26, as possible ease on bank loans to real estate developers may increase their capital flow, leading to better demand from both end-users and traders. Besides, rebar stocks at China’s 137 steelmakers under Mysteel’s tracking reversed from four weeks of increases, down 2.1% on week to 2.8 million tonnes as of November 18.
Hot-rolled coil: This price may ease in the week ending November 26, as most end-users have been buying just for immediate needs, and traders have been selling off stocks even though HRC stocks at the commercial warehouses in China’s 55 cities under Mysteel’s survey had declined for the sixth week as of November 18, though down at a slower pace of 3.3% to 3.3 million tonnes.
Cold-rolled coil: The price may soften this week, as most traders have appeared reluctant to stock up on market bearishness, and most end-users have been inactive in buying with low backlogs, and CRC stocks at China’s 29 steelmakers under Mysteel’s tracking, thus, grew for the fourth week by another 4.3% to 341,600 tonnes as of November 18.
Medium plate: The price is likely to fall over November 22-26, as steelmakers have been willing to cut down list prices on lower production costs, and traders have the tendency of offloading some stocks at lower prices to limiting pricing risks.
Sections: The price is expected to decline modestly in the week ending November 26, as China’s steelmakers are likely to trim ex-works prices to boost some sales, though the cut will not be deep, as the price of the Q235 150mm square billet in Tangshan, North China’s Hebei, reversed from the prior week’s decline, up Yuan 120/tonne ($18.8/t) on week to Yuan 4,250/t EXW including the VAT as of November 21, according to Mysteel’s assessment.
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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