Short-term prospects for China’s main steel products

Below is a brief short-term outlook for the five key metals companies on a weekly basis, based on relevant surveys and information from participants in the Chinese market.

Rebar and wire rod: From June 7 to June 11, prices for these grades may fall, mainly due to lower demand from construction sites throughout China due to heavy rains in South and East China and high temperatures in northern region.

Chances of a sharp decline are limited as rebar inventories in commercial warehouses in 132 cities in China, according to a Mysteel study, fell further by June 3, or declined another 1.4% weekly over the thirteenth week to 10.6 million tonnes.

Hot Rolled Coil: flat price may ease slightly in the week ending June 11 as end users were more cautious about restocking and as of June 3, HRC stocks are at commercial warehouses in 55 cities in China recovered from a three-week slump, although it rose just 0.2% over the week to 3.5 million tonnes.

Cold Rolled Coil: The price is likely to fluctuate during the week leading up to June 11 as most traders were adamant about their offer prices due to high producer selling prices, but demand, on the other hand, was sluggish … …

Plates: Price may fall between June 7-11 as production may decline as a major manufacturer in North China resumes production after refurbishment while demand remains largely flat.

The price is projected to rise in the week ending June 11, as most businesses are likely to raise their bid prices in part as rewinding machines in Tangshan, Hebei province in northern China, were again stopped during June 5-13. By June 6, the price of 150mm Q235 square billet in Tangshan rose by 20 RMB per ton ($ 3 per ton) over the week to 5,020 RMB per ton.

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