Near-term outlook on China's steel products

MySteel: 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 construction steel products are expected to rise over 23-27 September, as downstream demand may grow with the weather becoming pleasant for outdoor building activities and end-users' need to stock up these longs ahead of China's week-long National Day holiday commencing on 1 October. Their production may also increase in parallel.

Hot-rolled coil: This price is likely to continue to rebound in the week through 27 September. "The rise in price will be underpinned by lower output, better sales and replenishment needs before the (National Day) holiday break," a source in South China's Guangdong predicted. HRC stocks at commercial warehouses in the 33 Chinese cities Mysteel tracks fell for the second week, down by 2% or 67,300 tonnes (t) on week to 3.3 million tonnes (mnt) by 19 September.

Cold-rolled coil: This price may marginally fluctuate in the week ending 27 September, as demand may stay moderate and production levels largely stable. Output of cold-rolled coils among 29 steel mills Mysteel surveys may stand at 830,000-840,000 t this week.

Medium plate: This price is forecast to be narrowly volatile over 23-27 September, as demand is unlikely to see a substantial recovery despite the need for restocking, and traders are cautious about the near-term market outlook.

Sections: The sections' prices may move range-bound at high levels this week. Production is expected to increase as mills' enthusiasm for cranking up output may be boosted by their improved profitability. Meanwhile, end-users' demand to replenish their steel section stocks may increase due to seasonal factors and the upcoming seven-day holiday break.

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