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 construction steel products are likely to stay stable over 29 January-2 February. Last week, output of these two items declined as many blast-furnace mills halted production for maintenance, while demand from end-users weakened further with the Chinese New Year (CNY) holiday getting closer.

Hot-rolled coil: Prices of hot-rolled coil (HRC) may be range-bound in the week ending 2 February, with some traders showing an inclination to stock up some quantities ahead of the holiday break. A South China's Guangdong-based source said that cautiousness prevailed in the local market as demand for hot-rolled coils has been trending downward.

Cold-rolled coil: Prices of cold-rolled coil (CRC) are likely to show signs of softening in the week through 2 February, as many end-users have completed procurement of cold-rolled coils before the CNY holiday and the market will gradually come into a holiday mode.

Medium plate: This price is estimated to be slightly volatile over 29 January- 2 February. "Both production of and demand for medium plates are weak, and there is no significant change in market fundamentals," said a source in Shanghai, noting that many traders are not keen to replenish their plate inventories.

Sections: Sections' prices are expected to fluctuate at high levels during 29 January- 2 February. Production of sections may show a modest decline as re-rollers and integrated steelmakers across many Chinese regions will suspend operations or slow down production, while end-users have low acceptability of current section prices. However, pre-holiday replenishment is possible to ensure their normal production after the holiday.

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