Near-term outlook on China's key steel products

Below is the brief near-term outlook of the five key steel products Mysteel shares on a weekly basis, drawing upon the results of related surveys and communication with market participants.

Rebar & wire rod: The prices of these longs may record gains over April 19-23, mainly underpinned by robust demand and lower stocks. Rebar stocks in the commercial warehouses in the 132 Chinese cities Mysteel surveys declined for the sixth week as of April 15, falling by another 6.7% on week to 14.5 million tonnes.

Hot-rolled coil: The HRC price may hover this week, mainly prompted by the steady demand and declining stocks. As of April 15, hot coil stocks in the 55 cities surveyed by Mysteel fell for the sixth week, dipping by 3% on week to 3.6 million tonnes.

Cold-rolled coil: The price is likely to lose some ground in the week to April 23, as end-users are seen procuring only to fulfill immediate demand.

Medium plate: The price may record some gains over April 19-23, mainly thanks to strengthening demand from end-users.

Sections: The price is forecast to inch down in the week ending April 23, as most traders have shown a tendency to sell off their inventories to enjoy healthy profit margins. The price of the Q235 150mm square billet in Tangshan, North China’s Hebei province, slipped by Yuan 10/tonne ($1.5/t) on week to Yuan 4,960/t as of April 18.

Written by Yi Xia, xiayi@mysteel.com

This article has been published under an article exchange agreement between Mysteel Global and SteelMint.