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 are expected to strengthen further over October 19-23, given the tight availability and consistent demand for long steel products in October, a traditional peak season for construction activities in China.

Hot-rolled coil: The price is likely to lose some ground in the week through October 23, when most downstream buyers may take a wait-and-see stance amid subdued demand and tepid transactions.

Cold-rolled coil: Market participants expect a steady week ahead for the price, as it experienced marked rises last week on a decent downstream demand and a pickup in the pace of destocking after the long holiday.

Medium plate: The price is forecast to gain some upward momentum over October 19-23, mainly relying on the expected rosy demand from the domestic machinery sector, a key downstream user of the flat steel.

Sections: The price may drift lower over October 19-23, as consistent supplies from the steel mills, coupled with lackluster trading, will impose some pressure on market prices of all sections.

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

Photo Credit: World Steel