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 be narrowly rangebound over March 21-25, as the prices had sourced some support from high production costs. However, higher output from steelmakers may weigh on the prices. As of March 16, rebar output among China’s 137 steel mills under Mysteel’s survey gained for the fifth week by another 43,100 tonnes to 3 million tonnes.
Hot-rolled coil: This price may slip in the week ending March 25, as demand from end-users was constrained by relatively high HRC prices. Meanwhile, HRC output from domestic steelmakers is seen growing this week with their production resumption. As of March 16, HRC output among China’s 37 steelmakers under Mysteel’s tracking gained by 115,700 tonnes on week to 3.1 million tonnes.
Cold-rolled coil: The price may soften this week, as demand from end-users has remained sluggish with the resurgence of COVID-19 cases. As of March 17, CRC stocks at 182 warehouses in China’s 29 cities under Mysteel’s tracking grew by 6,000 tonnes on week to 2.2 million tonnes.
Medium plate: The price is likely to gain over March 21-25, as lower output from steelmakers with planned maintenance stoppages will lend some support to the price. As of March 16, plate output among 37 steelmakers under Mysteel’s tracking slipped for the second week by another 22,900 tonnes to 1.29 million tonnes.
Section: This price is expected to ease in the week ending March 25, as demand from end-users has been dampened by the coronavirus pandemic.
As of March 20, the Q235 150mm square billet price in Tangshan, North China’s Hebei province, stayed unchanged at Yuan 4,720/t EXW including the 13% VAT, 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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