Near-term outlook on China’s steel products

• Longs tags may rise amid macroeconomic policy boosts
• HRC prices to fluctuate amid cautious buying sentiment

Mysteel Global: 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 products may trend upwards over 6-9 May, propped up by expectations of new macroeconomic policies and shortages of some long steel specifications in the market. Meanwhile, sources warn that some traders are under pressure to clear their stocks due to fresh arrivals of long steel items during the Labour Day holidays over 1-5 May.

Hot-rolled coil: Prices are likely to fluctuate in the week through 9 May. Currently, HRC inventories held by traders remain low compared with the same period of previous years. However, many end-users are cautious regarding procurement.

HRC stocks at traders’ warehouses in the 33 Chinese cities under Mysteel’s tracking registered a nine-week fall, down by 5% or 140,900 tonnes (t) w-o-w to 2.69 million tonnes (mnt) as of 30 April.

Cold-rolled coil: Prices are expected to soften amid fluctuations in the week ending 9 May, as mills’ production may remain high, while downstream demand is likely to stay flat.

CRC output among the 29 steel mills Mysteel monitors nationwide rose by 2.2% or 18,800 t w-o-w to 875,200 t over 24-30 April.

Medium plate: Prices are expected to move within a narrow range during 6-9 May. Some end-users may replenish plate stocks after the holiday, but the overall market sentiment is likely to remain shaky.

Sections: Prices of steel sections may strengthen this week, as buying activities from end-users are likely to improve after the holiday break, while output of sections may stay largely stable from the prior week.

Note: This article has been written in accordance with a content exchange agreement between Mysteel Global and BigMint.