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 slip over April 11-15, as demand from end-users has been lower than expected, mainly due to the impact of the COVID-19 spread in some regions across China. Meanwhile, some traders were cautious about buying when the price had stayed at a relatively high level.
As of April 7, rebar stocks at 429 warehouses in China’s 132 cities under Mysteel’s survey gained 26,800 tonnes on week to 13.5 million tonnes.
Hot-rolled coil: This price may climb in the week ending April 15, as some traders have tendency of firming their offering prices with limited stocks at hand. As of April 7, HRC stocks at 194 warehouses in China’s 55 cities under Mysteel’s tracking stood at a low level of 3.8 million tonnes, though the volume grew 4,300 tonnes on week.
Cold-rolled coil: The price may decline this week, as end-users have been inactive in buying with few orders at hand, while output from mills posted a sharp on-week growth.
Medium plate: The price is likely to lose some ground over April 11-15, as the accumulation of stocks at traders weighed on the prices. As of April 7, plate stocks at 217 warehouses in China’s 65 cities Mysteel tracks increased by 21,600 tonnes on week to 2.2 million tonnes.
Section: This price is expected to ease in the week ending April 15, as some traders were willing to offload some volume to secure profits.
By April 10, the Q235 150mm square billet price in Tangshan, North China’s Hebei province, lost Yuan 70/tonne ($11/t) from April 2 to reach Yuan 4,790/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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