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 January 16-20, as demand from end-users will subside with most of them starting their breaks ahead of the Chinese New Year (CNY) holiday over January 21-27.

However, the fall in rebar output may lend some support to the prices. Rebar output among 137 Chinese steelmakers under Mysteel's tracking declined by 4% on week to 2.4 million tonnes as of January 11.

Hot-rolled coil: This price may grow in the week ending January 20, as many traders have lifted or firmed their offering prices on a bullish sentiment in the market.

Cold-rolled coil: The price may narrowly fluctuate this week, as demand from end-users has been dull with the CNY holiday drawing near. However, many traders have been active in replenishing stocks on the better outlook on the CRC prices after the holiday, which may support the prices.

As of January 12, CRC stocks at 182 warehouses in 29 Chinese cities under Mysteel's tracking grew by 3.3% on week to 1.9 million tonnes.

Medium plate: The price may run stable over January 16-20, as the decline in output may lend some support to the prices, despite that some mills have trimmed their offering prices on lower production costs. As of January 11, total plate output among 37 Chinese steelmakers under Mysteel's tracking recorded 1.3 million tonnes, down 2.8% on week.

Sections: Prices may fluctuate in a small range this week, as high anticipation of steel price rises after the CNY holiday will give a boost to the prices, while the rise in stocks at commercial warehouses may weigh on the prices at the same time.

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.