What to expect in the Chinese steel market?

Mysteel evaluated the short-term outlook for five core steel products, which it shares on a weekly basis, based on the results of relevant surveys and communications with the industry.

Rebar and wire rod
Prices for these longs may be in a tight range on December 13-17 as demand remains strong, particularly from end-users from Southern China, and supply is likely unchanged this week.

On the other hand, downside pressure from traders' inventories may remain low as rebar inventories in commercial warehouses in 132 Chinese cities, following Mysteel, decreased by 5.3% to 5.7 million tons for the ninth week as of December 9.

hot rolled coil
Steel prices may soften in the week ending December 17, as most end users may be inactive in buying and traders may move occasionally as Mysteel's 55 Chinese commercial warehouses have stocks of HRC. The survey reversed from an eight-week decline as of December 9, but the weekly slope reached 3.1 million tons at just 0.5%.

cold rolled coil

The price may decline modestly this week as demand from end-users is sluggish and traders are willing to ease their stocks and CRC inventories in 29 cities of China affiliated with Mysteel to minimize price risks. The follow-up therefore fell for the seventh week as of December 9, but was down just 1,700 tons for the week to 1.86 million tons on cold demand.

medium thickness plate
The price is expected to soften on 13-17 December as spot trading remains lukewarm and production increases with higher profit margins, and as of December 8, 37 Chinese steelmakers' plate production increased, following Mysteel. In the fourth week, it increased 3.7% to 1.3 million tons.

The price is expected to lose some ground in the week ending December 17, amid rising market pessimism among traders who noted that despite the news of loosening control over bank loan issuance and the price of the Q235 150mm, demand has not increased. According to Mysteel's assessment, square billet in Tangshan, northern China's Hebei province, fell to Yuan 4,310/t EXW including VAT, from three weeks' increases or 10 Yuan/tonne ($1.6/t) weekly decreases through December 12.