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 grow over February 7-11, mainly supported by the anticipation of better demand from end-users amid low supply among steelmakers.
Besides, rebar stocks at the commercial warehouses across China under Mysteel’s survey were at a relatively low level compared to the same period of last year. By January 27, rebar stocks at the 429 commercial warehouses in the 132 Chinese cities under Mysteel’s tracking stood at 7.6 million tonnes, 926,700 tonnes lower from January 28 2021.
Hot-rolled coil: This price may climb in the week ending February 11, as most traders have taken on an optimistic stance on the prices, mainly due to low supply from steel producers and low stocks at traders.
Cold-rolled coil: The price may ease this week, as supply from mills is likely to grow after the Chinese New Year (CNY) holiday over January 31-February 6. Besides, stocks at the commercial warehouses were relatively high compared with the same period of last year, which may prompt traders to sell off their stocks at lower prices.
Medium plate: The price is likely to slip over February 7-11, as many end-users had fulfilled their short-term restocking needs ahead of the CNY holiday when plate prices continued rising.
Section: This price is expected to decline modestly in the week ending February 11, as most replenishment orders from end-users are likely to arrive in the coming days, which may weigh on section prices.
The price of the Q235 150mm square billet in Tangshan, North China’s Hebei province, was locked at Yuan 4,500/tonne ($707.4/t) EXW including the 13% VAT over January 28-February 6, 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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