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 these longs may be narrowly range-bound over December 5-9, as downstream demand is seen dropping with the recent cold wave sweeping across China, while market sentiment has been lifted somewhat by the improved macroeconomic environment.

Besides, low supply from mills may also lend some support to the prices. Rebar output among 137 Chinese steelmakers under Mysteel's tracking declined by 7,400 tonnes on week to 2.8 million tonnes as of November 30.

Hot-rolled coil: This price may grow in the week ending December 9, due to low stocks at commercial warehouses. As of December 1, HRC stocks at 194 warehouses in 55 Chinese cities Mysteel tracks had declined for the seventh week by another 3% on week to 2.9 million tonnes.

Cold-rolled coil: The price may fluctuate in a small range this week, as market sentiment among traders has improved after the Chinese government announced a series of optimizations to COVID prevention and containment measures. As of December 1, CRC stocks at 182 warehouses in 29 Chinese cities under Mysteel's tracking stood at 1.9 million tonnes, down 1.5% on week.

Medium plate: The price may slip over December 5-9, as the mismatch between supply and demand is likely to weigh on the prices. Besides, the stocks at the warehouses have also mounted, with plate stocks at 217 warehouses in 65 Chinese cities under Mysteel's tracking growing by 1.3% on week to 2 million tonnes as of December 1.

Sections: Prices may drop this week, as demand from end-users has been sluggish amid high supply from mills, though as of December 4, the Q235 150mm square billet price in North China's Tangshan under Mysteel's assessment increased by Yuan 40/tonne ($5.7/t) from November 27 to Yuan 3,600/t EXW and including the 13% VAT.

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.