Below is the brief near-term outlook for the five key steel products Mysteel shares on a weekly basis, drawing upon the results of related surveys and communication with Chinese market participants.
Rebar & wire rod: The prices of these longs may ease over June 27-July 1, as demand from end-users has been dull amid high temperatures and rainy weather in many cities across China. Besides, June is traditionally a slack consumption period for steel use in China. As of June 22, rebar stocks at the 137 steelmakers in Mysteel’s survey had gained 5.2% on week to reach 3.6 million tonnes.
Hot-rolled coil: This price may decline in the week ending July 1, as the dearth of orders from end-users has weighed on prices. As of June 23, HRC stocks at 194 warehouses in 55 Chinese cities under Mysteel’s tracking had edged up by 0.9% on week to 4.1 million tonnes.
Cold-rolled coil: The price may soften this week, as most traders have become quite bearish about prices recently. Besides, stocks at both traders and mills have continued to mount, mainly due to dull demand from the market.
Medium plate: The price is likely to fall over June 27-July 1, as most traders are pessimistic about prices, given lackluster trading activities in the spot market.
Sections: Price of these are expected to slip this week, as most traders have opted to sell off some stocks (even by sacrificing margins) to reduce their risks, after noting the sluggish demand from end-users and bearish sentiment prevailing in the market. As of June 26, the Q235 150mm square billet price in North China’s Tangshan had fallen by Yuan 120/tonne ($17.9/t) on week to Yuan 3,960/t EXW and including the 13% VAT.
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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