Near-term outlook on China's steel products

MySteel Global: 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 soften over 22-26 July, due to both low demand and production of the items as well as weak market sentiment. Some traders are inclined to lower their rebar stocks ahead of the implementation of the newly stipulated standards for rebar to reduce their risks, as reported.

As of 18 July, rebar inventories at trading houses in 132 Chinese cities Mysteel tracks declined for the second week by 1.5% or 142,400 tonnes (t) to 9.2 million tonnes (mnt).

Hot-rolled coil: This price is likely to be range-bound in the week through 26 July. Market participants generally hold a cautious stance towards the HRC market outlook given the still high production and inventories.

HRC stocks held by traders in 55 cities Mysteel monitors nationwide mounted for the third week, up 0.6% or 28,200 t on week to touch a 3.5-month high of 4.6 mnt as of 18 July.

Cold-rolled coil: This price is estimated to slightly fall amid volatility in the week ending 26 July. CRC traders are keen to sell off their stocks at hand due to a lack of confidence in the market outlook, yet demand from end-users appears low. On the supply side, CRC output among the 29 steel producers Mysteel checks may persist around 840,000-850,000 t this week.

Medium plate: This price may fluctuate downward over 22-26 July. Demand from end-users remains slack, and production enthusiasm among local steel mills is low due to their poor profit margins, according to a source in northern China. Generally, cautious sentiment prevails in the market.

Sections: The sections' prices are projected to trend downward slightly over 22-26 July. End-users are not enthusiastic about stocking up sections due to seasonal lull and tight project funds. On the other hand, section production may stay largely stable this week.

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