Near-term outlook on China's steel products

MySteel: Below is the brief near-term outlook for five key steel products Mysteel shares w-o-w, drawing upon the results of related surveys and communication with Chinese market participants.

Rebar & wire rod: Prices of these two construction steel products are likely to fluctuate over 8-11 October, as demand from end-users has yet to rise substantially, while the pressure of destocking may mount after China's National Day holiday in tandem with higher production.

Hot-rolled coil: This price may still have some room to move up in the week ending 11 October. A source based in East China's Jiangsu said that most traders hold a positive stance amid favourable macro policies and they are inclined to hold onto offering prices.

Cold-rolled coil: This price is estimated to rise in the week through 11 October, mainly on the back of bullish market sentiment fuelled by China's macroeconomic stimulus package lately. However, the space for growth may be limited as there are uncertainties about the improvement in market fundamentals of cold-rolled coils.

Medium plate: This price may strengthen this week, also thanks to the impact of macroeconomic factors, while end-users generally take a wait-and-see stance, and they are in no hurry to purchase medium plates.

Sections: The sections' prices may be continuously propped up by the macro policies over 8-11 October, while the post-holiday demand is an important factor affecting the price stability, according to a market insider in North China's Tangshan. He warns that the situation of supply exceeding demand has not significantly improved.

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