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 the Chinese market participants. April 25 is a make-up working day in China ahead of the Labour Day holiday over May 1-5.

Rebar & wire rod: The prices of these longs may inch up over April 25-30, as end-users opt to replenish stocks ahead of the Labour Day holiday. Besides, rebar stocks in the commercial warehouses of China's 132 cities under Mysteel's survey declined for the seventh week as of April 22, down another 5% on week to 13.8 million tonnes, lending support to the spot longs prices.

Hot-rolled coil: The HRC price may strengthen in the week ending April 30, mainly underpinned by limited supply and declining stocks while remaining robust demand in and out of China. As of April 22, HRC stocks in China's 55 cities under Mysteel's regular tracking declined for the seventh week, dipping by 1.7% on week to 3.5 million tonnes.

Cold-rolled coil: The price may inch down in the week to April 30, as end-users such as automakers have reportedly trimmed the production with the persistent shortage of chips.

Medium plate: The price may strengthen over April 25-30, mainly prompted by the limited supply and high production costs.

Sections: The price is anticipated to increase in the week ending April 30, as most end-users will replenish stocks ahead of the break, and the price of the Q235 150mm square billet in Tangshan, North China's Hebei province, increased by Yuan 20/tonne ($3.1/t) on week to Yuan 4,980/t as of April 25.

Written by Villanelle Xia, xiayi@mysteel.com

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