Near-term outlook on China's key steel products

Below is the brief near-term market 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.

Rebar & wire rod: The prices of these longs may inch down over May 17-21, as most end-users are tending to stay on the sidelines rather than buy. Traders too have adopted a cautious stance on buying. As of May 13, rebar stocks in the commercial warehouses in the 132 Chinese cities surveyed by Mysteel declined for the tenth week, though at the faster pace of 5.5% on week, to 11.9 million tonnes. The total was still 6 million higher than at the start of the year, however.

Hot-rolled coil: The HRC price may dip in the week ending May 21, as most mills have resumed production after scheduled maintenance work. As of May 13, the stocks in the 55 cities surveyed by Mysteel had reversed down after the prior week's recovery, thinning by 3.2% on week to 3.6 million tonnes.

Cold-rolled coil: Prices of cold strip are seen softening as well, this week. Some traders have trimmed their offering prices, given that few deals had been concluded at high prices.

Medium plate: Prices of plate may inch up over May 17-21, mainly underpinned by robust demand from end-users that has encouraged mills to firm their offering prices.

Sections: The price is forecast to slip in the week ending May 21, as most end-users and traders are holding a wait-and-see attitude on procurement. The price of the Q235 150mm square billet in Tangshan, North China's Hebei province, slipped by Yuan 150/tonne ($23/t) from May 14 to Yuan 5,520 /t as of May 17.

Written by Villanelle Xia, xiayi@mysteel.com

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