Near-term outlook on China's steel products

Below is the brief near-term outlook for 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: Prices of the two long steel products are expected to be narrowly range-bound over 29-30 April, a short working week in China due to the Labour Day holidays spanning 1-5 May, as end-users are showing limited enthusiasm for restocking before the holidays, while integrated mills may increase their long steel output on improved margins. Moreover, market participants mainly hold cautious attitudes towards the post-holidays market.

Hot-rolled coil: This price may continue with the volatility over 29-30 April, with the support from high raw materials costs remaining in place and the destocking at warehouses persisting, while end-users appear prudently regarding procurement ahead of the five-day holiday break.

Cold-rolled coil: This price may marginally fluctuate over 29-30 April, as there will be limited room for demand growth with end-users only purchasing cold-rolled coil to meet their actual demand, while the price may source continuous support from resilient production costs.

Medium plate: This price may be volatile within a narrow range over 29-30 April. Steel mills' firm production costs will prop the price up, while the performance from the demand side remains to be proven as there are no clear signs of replenishment from end-users despite the approaching holidays.

Sections: The sections' prices are likely to move in tight ranges during 29-30 April, with steelmakers' overall output persisting at high levels, while demand from end-users is unlikely to expand substantially. The contradiction between production and demand will unlikely ease in the short term.

Note: This article has been written in accordance with an article exchange agreement between MySteel Global and BigMint.