Posted on 08 Jun 2021
Below is the brief near-term outlook of the five key steel products Mysteel shares on a weekly basis, drawing upon the results of related surveys and communication with the Chinese market participants.
Rebar & wire rod: The prices of these longs may dip over June 7-11, mainly as demand from construction sites has been dampened across China with heavy rain in South and East China and high temperature in the northern region.
The chances for sharp declines are limited, as rebar stocks in the commercial warehouses in China’s 132 cities under Mysteel’s survey, had declined further by June 3, or down for the thirteenth week by another 1.4% on week to 10.6 million tonnes.
Hot-rolled coil: The flat steel price may lose some steam in the week ending June 11, as end-users have been more cautious in replenishing stocks, and as of June 3, HRC stocks in the commercial warehouses in China’s 55 cities rebounded after three weeks of declines, though up just 0.2% on week to 3.5 million tonnes.
Cold-rolled coil: The price is likely to hover in the week to June 11, as most traders have been adamant on their offering prices because of high ex-works prices by the producers, but demand, on the other hand, has been lukewarm.
Medium plate: The price may dip over June 7-11, as output may incline with a major producer in North China to resume production after the maintenance while demand remain largely the same.
Sections: The price is forecast to grow in the week ending June 11, as most mills are likely to raise their offerings prices partly as the re-rollers in Tangshan, North China’s Hebei province, have been halted operations again over June 5-13 and by June 6, the price of the Q235 150mm square billet in Tangshan edged up Yuan 20/tonne ($3/t) on week to Yuan 5,020 /t.
Source:Mysteel Global
