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 two construction steel items may trend upwards over 19-23 February with limited contradiction between long steel production and demand. The output of the two items has declined to a low level while demand from end-users remained largely stagnant as work on construction sites and logistics has not significantly recovered yet.
Hot-rolled coil: This price may show signs of strengthening over 19-23 February due to the gradual release of demand and the support of macroeconomic expectations.
Cold-rolled coil: This price is likely to move up slightly in the week ending 23 February. Traders have some inclination to push up prices due to their cost pressure, a Southwest China-based source shared.
Medium plate: An industry watcher in South China’s Guangdong province estimated that the price of medium plates would gain some momentum over 19-23 February due to limited supplies of plates to the market during the Chinese New Year holiday, and some steel mills may curtail production afterward.
Sections: The sections’ prices are expected to rise over 19-23 February, as demand will improve with end-users across the country resuming operations after the holiday break, and the output of sections may grow in tandem due to the production resumption among re-rollers. Meanwhile, traders are optimistic about current market dynamics, and they may replenish sections in some quantities.
Note: This article has been written in accordance with an article exchange agreement between Mysteel Global and SteelMint.