Near-term outlook on China's key steel products

Below is the brief near-term outlook for the five key steel products Mysteel shares on a weekly basis, drawing upon the results of related surveys and communication with Chinese market participants.

Rebar & wire rod: The prices of these longs may be narrowly range-bound over August 8-12, as the continuing decline in stocks at commercial warehouses lent some support to the prices amid higher supply from mills. As of August 4, rebar stocks at 429 warehouses in 132 Chinese cities under Mysteel's tracking decreased by 5.2% on week to 8.9 million tonnes.

Hot-rolled coil: This price may slip in the week ending August 12, as demand from end-users has been recovering at a slow pace when supply from mills has hovered at a relatively high level. By August 3, HRC output at 37 Chinese steelmakers under Mysteel's tracking was at 3 million tonnes, despite an on-week decline of 41,100 tonnes.

Cold-rolled coil: The price may ease this week, as high stocks at commercial warehouses have been weighing on the prices. By August 4, CRC stocks at 182 warehouses in 29 Chinese cities under Mysteel's tracking stood at 2.2 million tonnes, despite an on-week decline of 12,100 tonnes.

Medium plate: The price is likely to narrowly fluctuate over August 8-12, as the spot trading volume slightly improved amid high supply from mills. By August 4, plate stocks at 217 warehouses in 65 Chinese cities under Mysteel's tracking came in at 2.2 million tonnes, down 14,800 tonnes on week.

Sections: The prices are expected to soften this week, as demand from end-users is likely to be dull after the completion of restocking. As of August 7, the Q235 150mm square billet price in North China's Tangshan remained unchanged on week at Yuan 3,760/tonne ($555.7/t) EXW and including the 13% VAT, according to Mysteel's assessment.

Written by Villanelle Xia, xiayi@mysteel.com

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