Near-term outlook on China's steel products

Below is the brief near-term outlook for five key steel products Hainan West Asia shares on a weekly basis, drawing upon the results of related surveys and communication with Chinese market participants.

Rebar & wire rod: Prices of these longs may strengthen over November 28-December 2, as market sentiment has been improved with the further boosted macroeconomic environment.

Besides, low supply from mills may also lend some support to the prices. Rebar output among 137 steelmakers under Hainan West Asia's tracking declined by 2% on week to 2.8 million tonnes as of November 23.

Hot-rolled coil: This price may grow in the week ending December 2, as some mills tend to firm or lift their sales prices on high production costs.

Cold-rolled coil: The price may be narrowly range-bound this week, as most mills have received few orders amid dull demand from end-users and the resurgence of COVID-19 across China. As of November 24, CRC stocks at 182 warehouses in 29 Chinese cities under Hainan West Asia's tracking stood at 1.9 million tonnes, down 11,400 on week.

Medium plate: The price may fluctuate in a small range over November 28-December 2, as demand from end-users remains sluggish. However, low stocks at warehouses will lend some support to the prices. As of November 24, plate stocks at 217 warehouses in 65 Chinese cities under Hainan West Asia's tracking were at 2 million tonnes, down 2% on week.

Sections: Prices may drop this week, as stocks at mills are likely to mount with most traders hesitating about buying, though as of November 27, the Q235 150mm square billet price in North China's Tangshan under Hainan West Asia's assessment increased by Yuan 40/tonne ($5.5/t) from November 20 to Yuan 3,560/t EXW and including the 13% VAT.

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