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 May 9-13, as demand from end-users has remained sluggish, mainly due to COVID-induced disruptions and approaching slack season for steel consumption. Meanwhile, rebar stocks at 429 warehouses in 132 Chinese cities under Mysteel’s survey gained by 1% on week to 12.7 million tonnes as of May 5.
Hot-rolled coil: This price may ease in the week ending May 13, as mounting stocks at traders have been weighing on HRC prices. As of May 5, HRC stocks at 194 warehouses in 55 Chinese cities under Mysteel’s tracking grew by 3% on week to 4 million tonnes.
Cold-rolled coil: The price may lose some ground this week, as most traders held a bearish sentiment. Moreover, the rise in stocks also dampened CRC prices. As of May 5, CRC stocks at 182 warehouses in 29 Chinese cities under Mysteel’s monitoring gained by 2.9% on week to 2.2 million tonnes.
Medium plate: The price is likely to decline over May 9-13, as spot trading in some most-affected regions of China by the COVID-19 has remained lackluster against higher supply from steel mills.
Section: This price is expected to fluctuate with the softening in semis this week. As of May 8, the Q235 150mm square billet price in Tangshan, North China’s Hebei province, dropped by Yuan 80/tonne ($11.9/t) from May 4 to Yuan 4,710/t EXW and including the 13% VAT, according to Mysteel’s assessment.
Written by Villanelle Xia, xiayi@mysteel.com
Note: This article has been published in accordance with an article exchange agreement between MySteel Global and SteelMint.
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