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 these two long steel products are likely to retreat over 17-21 June, with demand and production both weakening. Traders are under mounting pressure to sell these items at hand amid the non-peak season for construction steel consumption.

Hot-rolled coil: This price may fluctuate downward in the week through 21 June, as hot-rolled coil output may remain high, while demand may shrink to some extent.

Production of hot-rolled coils among the 37 mills nationwide under Mysteel's tracking grew for the second week over 6-12 June, up 0.7% or 21,300 tonnes (t) on week to hit a two-year high of 3.28 million tonnes (mnt).

Cold-rolled coil: This price may trend downward in volatility in the week ending 21 June, as mills' output may outpace demand from end-users. Sources predict that downstream users will be less inclined to replenish their stockpiles and mainly procure the item to meet their actual needs.

Medium plate: This price may be narrowly range-bound over 17-21 June. A source in northern China believes the fundamentals would stay weak due to high production and softening demand, and a South China's Guangdong-based source notes that local traders mainly hold a cautious stance and are not active in stocking up plate products.

Sections: The sections' prices may lose ground over 17-21 June, due to weak demand from end-users, while output may persist low as mills' production enthusiasm will be dented by squeezed margins and low demand.

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