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 two long steel items are forecast to rise over 22-26 April, with output fluctuating in limited range, demand staying stable, speculative buying activities acting robust and destocking of their inventories sustaining. Meanwhile, the market sentiment may appear cautiously positive.
Hot-rolled coil: This price is likely to move upward in the week ending 26 April, with market confidence driven up in tandem with the upswing in raw materials prices, and demand from the manufacturing sector may also improve.
Cold-rolled coil: This price may be narrowly volatile in the week through 26 April, with both production and demand staying largely stable. Sources noted that stocks of cold-rolled coils persist at a high level, and traders are under pressure to deliver their products at hand.
Medium plate: This price may slightly fluctuate over 22-26 April. A source in northern China predicted that the rising raw material prices will lend stronger support to the plate price, while the room for the release of demand may be limited with spot trading slowing down.
Sections: The sections’ prices may increase over 22-26 April, with the overall spot trading picking up and some product specifications are in shortage. On the other hand, steelmakers are not enthusiastic about lifting production of sections and prefer to lower their inventories at present.
Note: This article has been written in accordance with an article exchange agreement between MySteel Global and BigMint.