Short Term Outlook on China's Key Steel Products

Below is the brief near-term outlook of the five key steel products Mysteel shares on weekly basis based on a series of related surveys and communication with market participants.

Rebar & wire rod: China's construction steel prices are expected to stay in a choppy span over March 16-20, as finished steel inventories at the traders continued to build up while those at the mills reversed down after a three-month consecutive rise over March 9-13. Spot trading is expected to increase progressively amid improved sentiment and better downstream demand with the resumption of normal operations.

Hot-rolled coil: The price may remain weak though signs of stabilizing may emerge over March 16-20, as both production and inventories at the steel mills eased for the third week over March 9-13, but the record-high inventories at the traders may impose some pressure. Downstream demand may recover modestly with more manufacturers' resuming business.

Cold-rolled coil: Despite the first week-on-week drop in the traders' inventories over March 9-13 since early January, higher output and mounting stocks at the mills may keep CRC on downturn over March 16-20, further narrowing down its price difference against HRC.

Medium plate: The price is likely to wobble modestly over March 16-20, as mild destocking will continue and demand from downstream industries may improve.

Section: Together with the long steel products, section is expected to inch down further over March 16-20, amid the lacklustre trading and traders' urge to liquidate their inventories under the pressure of the remaining tight cash flow.

This article has been published under an article exchange agreement between Mysteel Global and SteelMint.