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: Both prices of the two long steel items are forecast to be largely rangebound at high levels over November 27-December 1 with downstream demand shrinking gradually as the weather across the country gets colder. Integrated mills in northern China are unlikely to ramp up production, while some increases may be seen in production of mini-mills in the country's southern parts.

Hot-rolled coil: This price may stay firm in the week ending December 1, as the market will be continuously propped up by positive macroeconomic signals, and demand may show some resilience mainly as end-users in southern China will speed up their work with the year-end approaching.

Cold-rolled coil: This price may be narrowly rangebound over November 27-December 1. The output of cold-rolled coils is estimated to grow slightly to 840,000 tonnes as some mills complete maintenance works, while demand from end-users may remain resilient.

Medium plate: This price may slightly fluctuate in the week through December 1, as demand is expected to remain lacklustre on the one hand, while steelmakers may lift production of plates on the other.

Production of medium plates among the 37 Chinese plate producers under Mysteel's tracking rose for the third week over November 16-22, up another 56,500 tonnes on week to hit a one-month high of 1.52 million tonnes.

Sections: The sections' prices are anticipated to soften over November 27-December 1. End-users may be not keen to procure the high-priced sections, and traders show less inclination to stock up sections this winter as well.

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