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 likely to retreat slightly over June 3-7, under the pressure of slower destocking of their inventories with the hot and humid weather pervading more parts of the country, and market sentiment also stays subdued.

Hot-rolled coil: This price may be volatile in the week through June 7, as high production costs and stimulus measures will support the price while the still-high production level and weak spot sales will exert pressure on it.

Cold-rolled coil: This price is projected to soften in the week ending June 7, as mills' production will stay largely stable, while demand will be slack, with most end-users being cautious about procuring the product. Currently, supply of cold-rolled coils has exceeded demand in the market.

Medium plate: This price over June 3-7 may narrowly fluctuate. A source in northern China said demand for steel plates might hardly improve in June, the traditionally slack consumption month, adding that the scope for price increases or decreases is expected to be limited.

Sections: The sections' prices may decrease over June 3-7, as demand will subside due to cash flow issues among downstream users and the non-peak season for steel use. For production, section producers will not be enthusiastic about ramping up output since they are already operating at the breakeven point and the demand is weak.

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