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 slip over November 21-25, as most traders are willing to sell off stocks at lower prices to reduce risks. Rebar stocks at 429 warehouses in 132 Chinese cities under Mysteel’s tracking declined by 4.5% on week to 5.6 million tonnes as of November 17.
Hot-rolled coil: This price may be narrowly range-bound in the week ending November 25, as some mills have tendency of firming their offering prices on high production costs. However, most end-users and traders have taken on a cautious stance of buying, leading to lackluster trading activities in the spot market.
Cold-rolled coil: The price may fluctuate in a small range this week, as most traders are willing to offload some stocks on a cautious stance. As of November 17, CRC stocks at 182 warehouses in 29 Chinese cities under Mysteel’s tracking stood at 1.9 million tonnes, down by 0.9% on week.
Medium plate: The price may decline modestly over November 21-25, as most market participants take on a bearish sentiment on the prices, though the decline in plate stocks at both mills and commercial warehouses will lend some support to the prices. As of November 17, plate stocks at 217 warehouses in 65 Chinese cities under Mysteel’s tracking stood at 2 million tonnes, down 5% on week.
Sections: Prices are expected to drop this week, as demand from end-users has remained sluggish during the traditional slack season for steel consumption. As of November 20, the Q235 150mm square billet price in North China’s Tangshan under Mysteel’s assessment stayed unchanged from November 13 to Yuan 3,520/tonne ($491.2/t) EXW and including the 13% VAT.
This article has been published under an article exchange agreement between Mysteel Global and SteelMint.
Written by Villanelle Xia, xiayi@mysteel.com
Edited by Zhenqi Yang, yangzhenqi@mysteel.com
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