Near-term outlook on China's key steel products

Below is the brief near-term outlook for the 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: The prices of these longs may slip over September 5-9, as most traders have been willing to sell off stocks to reduce potential risks amid bearish market sentiment. Rebar stocks at 429 warehouses in 132 Chinese cities under Mysteel's tracking slipped by 2.5% on week to 7.7 million tonnes as of September 1.

Hot-rolled coil: This price may decline in the week ending September 9, as most end-users procured only to meet their immediate demand amid high supply from mills.

Cold-rolled coil: The price may be narrowly range-bound this week, as demand from end-users is expected to recover with cooler temperatures. By September 1, CRC stocks at 182 warehouses in 29 Chinese cities under Mysteel's tracking had slipped for the fifth week by another 0.3% on week to 2.2 million tonnes.

Medium plate: The price is likely to slip over September 5-9, as most traders have taken on a bearish sentiment on the prices and spot trading activities have remained dull.

Sections: Prices are expected to soften this week, as output from mills have been at a high level, while demand from end-users remains sluggish. The Q235 150mm square billet price in North China's Tangshan under Mysteel's assessment dropped by Yuan 90/tonne ($13/t) on week at Yuan 3,680/t EXW and including the 13% VAT as of September 4.

~ Written by Villanelle Xia, xiayi@mysteel.com