Mysteel Global: Below is the brief near-term outlook on 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 expected to soften over April 7-11, with output rising further – albeit within a limited range – and demand staying largely stable. Meanwhile, the pace of destocking may slow, and overall market sentiment appears bearish.
The weekly production of rebar among the 137 steelmakers Mysteel tracks across China refreshed a four-month high at 2.29 million tonnes over March 27-April 2, up for the second week by 0.5% or 12,200 tonnes.
Hot-rolled coil: This price is likely to remain volatile in the week through April 11. A market insider in East China noted that many traders are unsure of the market’s direction amid the weakening of HRC prices, while another source in South China expressed a negative outlook, citing growing output and poor demand in the local market.
HRC stocks held by traders in 33 cities Mysteel samples nationwide thinned further last week by 3.1% or 97,300 tonnes on week to 3.01 million tonnes as of April 3, with the pace slowing from the 4.1% drop in the previous week.
Cold-rolled coil: This price is forecasted to fluctuate mildly in the week ending April 11. End-users mainly procure this steel item to fulfill immediate demand, but the volatility in the futures market may affect their sentiment. Currently, traders would rather maintain their CRC stockpiles at low levels to avoid risks, reflecting a cautious mood.
Medium plate: This price may remain rangebound during April 7-11. “In the short term, both production and demand of medium plate in our local market may stay weak,” a source in Guangzhou in South China’s Guangdong predicted, adding that local traders’ stocks of medium plate are declining due to fewer arrivals of the flat product.
Sections: The prices of steel sections are estimated to fluctuate in a narrow range this week, with output hovering high and demand showing an uptick. A source in Tangshan said although demand from end-users is unlikely to improve significantly, resilient raw materials prices may provide some support.
Note: This article has been written in accordance with a content exchange agreement between MySteel Global and BigMint.
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