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 the two long steel products are likely to trend downward over 1-5 July, with mills’ production fluctuating within a narrow range and downstream demand persisting at a low level amid the typical summer lull of steel consumption. Meanwhile, inventories of the longs are expected to continue to pile up, and the market mood may stay negative.
Hot-rolled coil: This price may decline in the week through 5 July, largely due to the subdued demand from end-users. A source in northern China shares that bearish sentiment has been prevailing in the domestic steel market, and market expectations for the rise in hot-rolled coil prices have reduced.
Cold-rolled coil: This price is estimated to weaken in the week ending 5 July, pressured by high production and low demand. End-users procure cold-rolled coils only to meet immediate demand, and they are not inclined to stock up on the flat product. Meanwhile, mills are not willing to suspend CRC production or commence maintenance work.
Medium plate: This price may be slightly rangebound over 1-5 July. According to a source based in South China’s Guangzhou, the market may remain jittery and demand for steel plates may stay sullen, with end-users acting cautiously about replenishing their stocks.
Sections: The sections’ prices may lose ground this week as both actual demand and speculative trading enthusiasm appear weak, while production of sections may also decrease with some steel mills already reducing their output on widening losses.
Note: This article has been written in accordance with an article exchange agreement between MySteel Global and BigMint.
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