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. June 3 is China’s Dragon Boat Festival holiday.
Rebar & wire rod: The prices of these longs may soften over May 30-June 2, as demand from end-users has yet to fully recover, mainly due to COVID containment measures in some regions across China. Meanwhile, rebar stocks at 137 steelmakers under Mysteel’s survey grew by 1.2% on week to 3.7 million tonnes as of May 25.
Hot-rolled coil: This price may slip in the week ending June 2, as some mills have tendency of selling off some stocks at lower prices to maintain sufficient cash flow. As of May 25, HRC stocks at 37 steelmakers under Mysteel’s tracking gained by 3.2% on week to 960,700 tonnes.
Cold-rolled coil: The price may stay narrowly range-bound this week, as end-users have adopted a cautious stance of buying with few orders at hands.
Medium plate: The price is likely to fluctuate in a small range over May 30-June 2, as demand from end-users has been sluggish while supply from mills has been declining. As of May 25, plate output among 37 steelmakers under Mysteel’s tracking eased by 2.6% on week to 1.44 million tonnes.
Section: This price is expected to be narrowly range-bound this week, as there is limited room for the already low price to decline further. As of May 29, the Q235 150mm square billet price in North China’s Tangshan dropped Yuan 50/tonne ($7.5/t) on week to Yuan 4,470/t EXW and including the 13% VAT, according to Mysteel’s assessment.
Written by Villanelle Xia, xiayi@mysteel.com
This article has been published under the article exchange agreement between Mysteel Global and SteelMint.
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