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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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14 Jun 2022, 10:48 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 slip over June 13-17, as demand from end-users has remained sluggish amid high temperatures and heavy rainfalls in different parts of China. Meanwhile, rebar stocks at 429 warehouses in 132 Chinese cities under Mysteel's survey increased by 3.1% on week to 12.2 million tonnes as of June 9.

Hot-rolled coil: This price may decline in the week ending June 17, as mills and traders opted to offload some volume at lower prices to maintain sufficient cash flows. As of June 9, HRC stocks at 194 warehouses in 55 Chinese cities under Mysteel's tracking gained by 2.5% on week to 4 million tonnes.

Cold-rolled coil: The price may soften this week, as end-users procured only to meet their immediate needs, given few orders at hand. Besides, traders have tendency of selling off some volume at lower prices with high stocks at hand.

Medium plate: The price is likely to lose some ground over June 13-17, as stocks at traders have tendency of mounting with more deliveries from mills. As of June 9, plate stocks at 217 warehouses in 65 Chinese cities under Mysteel's tracking gained by 2.2% on week to 2.3 million tonnes.

Section: This price is expected to fall this week, as demand from end-users has been dull and most traders have adopted a bearish sentiment recently. As of June 12, the Q235 150mm square billet price in North China's Tangshan edged down by Yuan 20/tonne ($3/t) on week to Yuan 4,480/t EXW and including the 13% VAT, according to Mysteel's assessment.

Written by Villanelle Xia, xiayi@mysteel.com

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

 

 

14 Jun 2022, 10:48 IST

 

 

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