- Supply-demand gap to weigh on longs prices
- HRC tags may fluctuate amid inventory pressure
Mysteel Global: 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 these two long steel products will be under pressure from the supply-demand imbalance over 17-21 February. However, demand among building contractors may improve further, though production is also poised to increase, as mills keep capitalising on profit margins and more electric-arc-furnace steelmakers resume operations.
Hot-rolled coil: Prices are forecasted to be volatile in the week through 21 February, amid rising pressure from inventories. Demand has been recovering at a slower-than-expected pace, but production persists at high levels, according to a source based in North China.
Stocks among traders in the 33 cities under Mysteel’s tracking nationwide grew for the sixth week in a row, up 6.4% or 203,500 tonnes (t) w-o-w to hit a five-month high of 3.38 million tonnes (mnt) as of 13 February.
Cold-rolled coil: Prices will likely fluctuate within a narrow scope in the week ending 21 February. Many traders hold a wait-and-watch stance towards the market. On the one hand, they expect macro policies to be introduced soon. On the other hand, their stockpiles of cold-rolled coils (CRCs) have been increasing continually, though at a limited pace.
CRC stocks at trading houses in the 26 Chinese cities Mysteel follows mounted by 3.4% or 41,600 t w-o-w to 1.26 mnt by 13 February.
Medium plate: Prices are expected to be largely range-bound during 17-21 February, with significant variations limited by the slow recovery in demand and lukewarm market sentiment, according to a market player in South China’s Guangdong. A North China-based source shared the same opinion, citing pressure from high stocks as well.
Sections: Prices of sections may fluctuate this week, with supply growing as re-rollers gradually resume operations after the Lantern Festival on 12 February. However, end-users remain cautious about purchasing steel sections despite the restart of work on construction sites after the long holiday break.
Note: This article has been written in accordance with a content exchange agreement between Mysteel Global and BigMint.
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