Below is the brief near-term outlook for 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: Prices of these longs may grow over February 27-March 3, as market sentiment has turned better with the improving demand from end-users.
Besides, rebar stocks at the warehouses paused from an eight-week rise, giving a boost to the prices. As of February 23, rebar stocks at the 429 warehouses in 132 Chinese cities under Mysteel’s tracking reached 13.1 million tonnes, down by 1,600 tonnes on week.
Hot-rolled coil: This price may ease in the week ending March 3, as many traders are likely to compromise on prices to facilitate sales, with more deliveries from mills.
Cold-rolled coil: The price may be narrowly range-bound this week, as the spot trading volume has been lower than expected. Besides, the stocks at the warehouses have also hovered at a high level, which may weigh on the prices.
As of February 23, CRC stocks at the 182 warehouses in 29 Chinese cities under Mysteel’s tracking stood at 2.2 million tonnes, despite an on-week decline of 24,700 tonnes.
Medium plate: The price may fluctuate in a small range this week, as the decline in mills’ output has lent some support to the prices. However, end-users have opted to stay on the sidelines with most traders firming their offering prices.
Total plate output at the 37 steelmakers Mysteel tracks eased by 1.9% on week to 1.4 million tonnes as of February 22.
Sections: Prices may lose some ground over February 27-March 3, as many traders are willing to sell off some volumes at lower prices, given their high stocks at hand.
Written by Villanelle Xia, xiayi@mysteel.com
Edited by Alyssa Ren, rentingting@mysteel.com
Note: This article has been written in accordance with an article exchange agreement between Mysteel Global and SteelMint.
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