Weekly: Near-term outlook on China's steel products

Mysteel: Below is the brief near-term outlook for five key steel products shared by Mysteel on a weekly basis, drawing upon the results of related surveys and communication with Chinese market participants.

Rebar, wire rod: Prices of these two carbon steel products are expected to strengthen over 14-18 October, with both demand and production rising, potentially leading to thinning inventories. Meanwhile, prices will be propped up by buoyant market sentiment, thanks to China's recent favourable fiscal policies.

Hot-rolled coil: Prices are likely to move up in the week through 18 October, driven by better market expectations and a recovery in hot-rolled coil (HRC) demand from end-users.

As of 10 October, HRC stocks held by traders in the 33 Chinese cities under Mysteel's tracking declined for the fifth straight week, down by 34,700 tonnes (t) or 1.2% w-o-w to 2.98 million tonnes (mnt).

Cold-rolled coil: Prices are expected to fluctuate over the week ending 18 October, as mills' cold-rolled coil (CRC) output will stay largely stable, while end-users are still purchasing the product to fulfil their immediate demand.

CRC production among the 29 steel mills across China that Mysteel monitors may stand at around 830,000 t this week, according to Mysteel's projection.

Medium plate: Prices may be narrowly range-bound over 14-18 October. The growth in demand from end-users is likely to be limited, as they are generally cautious about plate procurement, according to a source in South China's Guangdong.

Sections: Sections' prices may strengthen this week, as cash flow among downstream enterprises has improved moderately and the number of newly launched projects has increased. Meanwhile, frequent macroeconomic policies have also fuelled positive sentiment across the steel sector.

Note: This article has been written in accordance with a content exchange agreement between Mysteel Global and BigMint.