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 long steel products may spiral down over February 8-19 mainly on the weakening demand, as most construction workers that have been back to their hometowns will probably resume work only after February 26, the Lantern Festival, or the end of the Chinese New Year (CNY) celebration in tradition, though the official holiday ends on February 17.

Hot-rolled coil: The HRC price may slide but modestly in the week ending February 19, as stocks have piled up with the demand ebbing before the CNY holiday, though the volume at the trading houses of China's 55 cities rebounded only moderately by 8.2% on week to 3.2 million tonnes as of February 4.

Cold-rolled coil: The price is likely to hover in the week to February 19, which is also due to the rises in the stocks as a result of lower demand, as deals concluded have been thinning since the start of January, and most traders will adopt a wait-and-see stance after the CNY holiday.

Medium plate: The price may stand chances of inching up in the second and third weeks of February, as demand is expected to revive after the CNY holiday, while output will decrease in the next few weeks with mills conducting the scheduled maintenance on their facilities.

Sections: The price is forecast to spiral down in the week ending February 19, as the traders are likely to sell off some inventories despite higher cost when the trading resumes after having been suspended earlier than usual ahead of the CNY holiday. The price of the Q235 150mm square billet in Tangshan, North China's Hebei province, has been locked at Yuan 3,850/tonne over February 2-17.

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

Photo: World Steel Association