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. January 2 is an off day for the New Year holiday.

Rebar & wire rod: Prices of these longs may strengthen over January 3-6, as most traders tend to firm their offering prices on high costs for winter restocking.

Besides, the decline in rebar output may also lend some support to the prices. Rebar output among 137 steelmakers under Mysteel's tracking declined by 1.9% on week to 2.7 million tonnes as of December 28.

Hot-rolled coil: This price may grow in the week ending January 6, as some end-users will replenish some HRC due to their low stocks at hand.

Cold-rolled coil: The price may be narrowly range-bound this week, as market sentiment remains bearish with lackluster trading activities in the spot market. As of December 29, CRC stocks at 182 warehouses in 29 Chinese cities under Mysteel's tracking stood at 1.8 million tonnes, up by 1.5% on week.

Medium plate: The price may decline over January 3-6, as some traders are willing to sell off their stocks at lower prices to reduce risks. As of December 29, plate stocks at 217 warehouses in 65 Chinese cities under Mysteel's tracking were at 1.9 million tonnes, down 0.4% on week.

Sections: Prices may lose some ground this week, as most end-users have been inactive in buying during the slack consumption period for steel, while supply from mills has hovered high, weighing on the prices.

Written by Villanelle Xia, xiayi@mysteel.com

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