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 forecast to fluctuate slightly over July 8-12, with weak supply-demand fundamentals persisting and retail inventories edging up. Market sentiment may remain cautious.

Hot-rolled coil: This price may continue to be volatile in the week through July 12, with the imbalance between high output and low demand existing, while market expectations for supportive macroeconomic policies may prop up the price.

Production of hot-rolled coils among the 37 flat steel producers nationwide under Mysteel's tracking over June 27-July 3 grew at a faster pace, up by 1.4% or 44,400 tonnes on week to 3.26 million tonnes. Meanwhile, their stocks at commercial warehouses in the 33 Chinese cities Mysteel checks mounted by 2.6% or 82,400 tonnes on week to 3.31 million tonnes by July 4.

Cold-rolled coil: This price is likely to soften in the week ending July 12, due to mounting pressure from the supply side, while demand from the manufacturing sector stays lackluster.

Total inventories of cold-rolled coils held by trading houses in the 26 Chinese cities Mysteel follows increased by 1.3% or 18,700 tonnes on week to 1.48 million tonnes as of July 4.

Medium plate: This price may be narrowly rangebound over July 8-12 against the backdrop of a supply-demand imbalance and ongoing market expectations for favourable macroeconomic policies, according to a source in northern China.

Sections: The sections' prices may decline this week. Spot trading of sections may remain weak amid the low steel consumption season, while output of sections may also stay low with some mills halting operations on squeezed profit margins.

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