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: Prices of these longs may grow over January 30-February 3, as many mills have tended to lift their sales prices on improved sentiment.

Besides, the accumulation of rebar stocks at the traders was less than expected. Rebar stocks at 429 warehouses in 132 Chinese cities mounted by 16.6% on week to 9.8 million tonnes as of January 26.

Hot-rolled coil: This price may strengthen in the week ending February 3, as most traders are bullish on the prices in anticipation of better demand from end-users.

Cold-rolled coil: The price may increase this week, as most traders have adopted an optimistic sentiment on the prices, and many mills have lifted their sales prices on higher production costs.

Medium plate: The price may gain over January 30-February 3, as many traders have lifted their offering prices on the bullish sentiment prevailing in the market.

Sections: Prices may be narrowly range-bound this week, as many traders have a tendency to firm their offering prices on high costs, while most end-users have opted to procure only to meet immediate demand, reflecting a cautious stance.

Written by Villanelle Xia, xiayi@mysteel.com

Edited by Alyssa Ren, rentingting@mysteel.com

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