Near-term outlook on China's steel products

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 may face downward pressure over 6-10 May, as the recovery in demand from building contractors is likely to be constrained by frequent rainfalls in southern China, while steelmakers will be keen to ramp up output thanks to their improved steel margins.

Hot-rolled coil: This price is expected to be range-bound over 6-10 May, as steel consumption from end-users remains weak and they will be unwilling to stock up large quantities of the flat steel product as well. Meanwhile, mills' hot coil production may stay largely stable.

Cold-rolled coil: This price may be volatile in the week ending 10 May, as the imbalance between supply and demand still exists, though some traders are bullish on the post-holiday market.

Medium plate: This price is likely to narrowly fluctuate over 6-10 May, as the pace of accumulation in stocks may be faster than market participants expected, and traders generally have a negative mood. Meanwhile, steel mills' output of medium plates may persist at high levels.

Sections: The sections' prices may be volatile at low levels in the week through 10 May, with output hovering at a high level and destocking pressure building further. The price trajectory this month depends on whether the upturn in demand can exceed market expectations, sources said.

Note: This article has been written in accordance with an article exchange agreement between MySteel Global and BigMint.