WEEKLY: 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 the two long steel products are forecast to soften over June 24-28, with mills' production rising modestly, while demand from end-users may still hover at a low level and long steel stocks at commercial warehouses are likely to mount further. Many traders are inclined to sell these steel products at hand amid the low season for long steel consumption and overall subdued market sentiment, a source said.

Hot-rolled coil: This price may continue to weaken in the week through June 28, as demand may decline while production may persist largely high. Last week, inventories of hot-rolled coils increased due to low demand, with the tonnage held among trading houses in the 33 Chinese cities that Mysteel tracks growing by 21,800 tonnes on week to 3.27 million tonnes as of June 20.

Cold-rolled coil: This price may fall moderately in the week ending June 28, as the supply-demand imbalance may widen, with demand from end-users shrinking gradually, while mills' output remains high. A source notes that spot trading for cold coil has not recovered as expected despite its low prices in the market.

Medium plate: This price may be marginally volatile over June 24-28. "Most traders hold a relatively negative attitude, considering the lackluster plate demand," said a source in South China's Guangzhou, adding that destocking pressure among traders has not mounted though.

Sections: The sections' prices will likely fluctuate downward over June 24-28, as both actual demand from end-buyers and speculative buying among traders stay sullen. Meanwhile, mills may keep their output of steel sections at low levels amid squeezed margins. "Some mills have already scaled back their production pace," according to a source.

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