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 longs may strengthen over January 9-13, as most traders tend to lift or firm their offering prices on high costs for winter replenishment.
Besides, the fall in rebar output may also lend some support to the prices. Rebar output among 137 steelmakers under Mysteel’s tracking declined by 8.8% on week to 2.5 million tonnes as of January 4.
Hot-rolled coil: This price may grow in the week ending January 13, as some traders have gained confidence on improved market sentiment and may lift their offering prices accordingly.
Cold-rolled coil: The price may be narrowly range-bound this week, as some mills have received more orders with traders being active in buying amid better market sentiment. However, many end-users procured only to fulfill immediate demand, as most of them have started the Chinese New Year holiday over January 21-27 in advance.
As of January 5, CRC stocks at 182 warehouses in 29 Chinese cities under Mysteel’s tracking stood at 1.9 million tonnes, up by 2.3% on week.
Medium plate: The price may narrowly fluctuate over January 9-13, as some mills have opted to firm their offering prices on high production costs. Besides, the decline in output may also lend some support to the prices. As of January 4, plate output among 37 steelmakers under Mysteel’s tracking were at 1.4 million tonnes, down 1.5% on week.
Sections: Prices may lose some steam this week, as most end-users have shown little interest in buying amid the low season for steel consumption, while production among mills remains high, weighing on the prices.
Written by Villanelle Xia, xiayi@mysteel.com
This article has been published under an article exchange agreement between Mysteel Global and SteelMint.
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