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Near-term outlook on China's key steel products

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 t...

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27 Jul 2021, 10:39 IST
Near-term outlook on China's key steel products

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 soften over July 26-30, as demand from the end-users will be further weakened by the probably torrential downpours in East China this week because of the Typhoon In-Fa, even though rebar stocks in the commercial warehouses of China's 132 cities reversed from five weeks of increases as of July 22, down 0.4% on week to a total of 11.7 million tonnes.

Hot-rolled coil: This price may soften in the week ending July 30, as weakening demand from end-users has been persisting, as indicated by the accumulation in stocks, and on July 22, HRC stocks in the commercial warehouses of China's 55 cities increased for the eighth week, up another 2.1% on week to 4.1 million tonnes.

Cold-rolled coil: The price is likely to strengthen in the week to July 30, mainly underpinned by the limited output from mills while demand will remain largely the same on week.

Medium plate: The price may move up over July 26-30, mainly being supported by the declining stocks at both mills and traders, down a total of 16,600 tonnes on week to 2 million tonnes.

Sections: The price is expected to be narrowly rangebound in the week ending July 30, mainly due to limited output but also sluggish demand from end-users, while the support from the billet may stay, as by July 25, the price of the Q235 150mm square billet in Tangshan, North China's Hebei province, inched up by Yuan 20/tonne ($3.1/t) on week to Yuan 5,200/t EXW including the 13% VAT.

Written by Villanelle Xia, xiayi@mysteel.com

This article has been published under an article exchange agreement between Mysteel Global and SteelMint.

 

27 Jul 2021, 10:39 IST

 

 

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