Near-term outlook on China's steel products

Mysteel Global: Below is the brief near-term outlook that Mysteel shares for five key steel products on a weekly basis, drawing upon the results of related surveys and communication with Chinese market participants.

Rebar, wire rod: Prices of these two construction steel items are likely to be range-bound over 9-13 September, as production will rise further, while actual demand may only see a slight recovery. With the growth of output expected to outpace that of demand, market sentiment stays bearish.

Hot-rolled coil: Prices may soften in the week through 13 September. "HRC output remains at a high level currently, while demand from end-users has yet to improve," according to a source in northern China.

HRC stocks at commercial warehouses in the 33 Chinese cities Mysteel monitors ended two weeks of declines, rising by 24,700 tonnes (t) w-o-w to 3.49 million tonnes (mnt) as of 5 September.

Cold-rolled coil: Prices may fall in the week ending 13 September, mainly pressured by the imbalance between supply and demand. Downstream users have been purchasing cold-rolled coils to fulfil their immediate needs, and the room for demand growth in the near term will be limited, according to a market source.

Medium plate: Prices are projected to slightly fluctuate over 9-13 September. The market fundamentals of medium plates may hardly improve with a slow recovery in downstream demand. A negative mood has been prevailing among market participants.

Sections: Sections' prices may bottom out this week, as some mills have suspended steel section production for maintenance, while demand may rise with the progress of outdoor construction work at building sites due to better weather conditions.

Note: This article has been written in accordance with a content exchange agreement between Mysteel Global and BigMint.