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 based on a series of related surveys and communication with market participants. May 9 is a working day in China after the long Labour Day holiday over May 1-5.

Rebar & wire rod: Construction steel prices are likely to stay in a weak pattern over May 6-9, as stocks built up during the holiday may dampen post-holiday demand and impose pressure on prices.

Hot-rolled coil: The price may stay rangebound over May 6-9 amid accelerated destocking at the traders and maintenance-related production cuts by the Chinese steel mills, but it is with growing possibility that production may reverse up after the overhauls.

Cold-rolled coil: The price is expected to be under moderate pressure over May 6-9 because of the stocks piling up during the holiday, though the production reduction among the Chinese steel producers in the last week of April may ease the pressure.

Medium plate: Most market participants expect stability in the price over May 6-9, noting the healthy ordering the Chinese steel mills have received recently, suggesting fairly good demand from the end-users.

Sections: The price may walk into a seesawing situation over May 6-9, as re-rollers are unwilling to cut their offering prices when the price of billet in Tangshan, North China's Hebei province, rose Yuan 20/tonne on week to Yuan 3,090/t EXW including the 13% VAT on April 30, while end-users will still stick to a hand-to-mouth procurement approach.

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