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 be narrowly range-bound over March 13-17, as domestic steel mills are willing to ramp up their production, given the improved profit margins they could currently earn. Meanwhile, the demand from end-users will also grow steadily.
Rebar stocks at the warehouses have declined for the third week, lending some support to the prices. As of March 9, rebar stocks at the 429 warehouses in 132 Chinese cities under Mysteel’s tracking stood at 12.7 million tonnes, down by 2.3% on week.
Hot-rolled coil: This price may gain in the week ending March 17, as market sentiment has improved with better demand from end-users.
Besides, the steady drop in stocks may also boost the prices. The HRC stocks at the 194 warehouses in 55 Chinese cities under Mysteel’s tracking lost 4.5% on week to 4 million tonnes as of March 9.
Cold-rolled coil: The price may fluctuate in a small range this week, as end-users have procured only to meet immediate demand, given the meagre profit margins they could currently earn. However, many traders have firmed their offering prices for cold coils that they purchased at high prices.
Medium plate: The price may grow modestly this week, as many mills have firmed their offering prices on high production costs.
Besides, plate stocks at the warehouses have dropped for the fourth week, giving a boost to the prices. As of March 9, plate stocks at the 217 warehouses in 65 Chinese cities slipped by 6.3% on week to 2.4 million tonnes, according to Mysteel’s tracking.
Sections: Prices may slip over March 13-17, as supply from steelmakers is likely to grow with the lift of production curbs, and the decline in stocks at the traders have slowed compared with the previous week.
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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