Posted on 06 Jul 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 recover modestly over July 5-9, mainly underpinned by high production costs and limited output over June 28-July 1 when a few provinces curbed their local steel output for pollution control during the celebration of the centenary of the Communist Party of China on July 1. Rebar stocks in the commercial warehouses of China’s 132 cities increased for the third week by another 3% on week to 11.4 million tonnes as of July 1.
Hot-rolled coil: This flat steel price may slip in the week ending July 9, mainly driven by weakening demand and higher stocks, as by July 1, HRC stocks in the commercial warehouses of China’s 55 cities increased for the fifth week, up 2.6% on week to 3.9 million tonnes.
Cold-rolled coil: The price is likely to soften in the week to July 9, as most end-users opted to stay on the sidelines, not keen to procure much.
Medium plate: The price may dip modestly over July 5-9, as trading activities have been thinning.
Sections: The price is expected to be rangebound in the week ending July 9, as a result of limited output during the grand celebration while weakening demand from end-users at the same time. As of July 4, the price of the Q235 150mm square billet in Tangshan, North China’s Hebei province, edged up by Yuan 10/tonne ($1.5/t) on week to Yuan 4,870/t EXW including the 13% VAT.
Source:Mysteel Global
