Posted on 13 Oct 2023
Stocks of the five major carbon steel products at Chinese steel traders under Mysteel's weekly survey reversed down by 1.4% during October 7-12, the first week following the country's Mid-Autumn Festival and National Day holidays, as spot trading had resumed after the break. Yet behind the dip, pessimism continues to prevail in the market about the strength of actual steel demand this month.
The five major finished steel products comprise rebar, wire rod, medium plate, hot-rolled and cold-rolled coil. The total stocks held by traders in the 132 Chinese cities sampled by Mysteel had thinned by 257,500 tonnes on week to 18.4 million tonnes as of October 12, as against the 5.4% rise in the prior period, the latest data indicated.
According to the survey, stocks of rebar declined at the fastest pace, falling by 277,000 tonnes on week to 7.2 million tonnes, while wire rod inventories retreated by 56,300 tonnes on week to 1.9 million tonnes.
The stocks also dipped because end-users had to procure some products after the holidays to fulfill their immediate needs. Yet even though demand had already recovered at a slower-than-expected pace in September, many market participants still hold a pessimistic view of steel demand in October.
Over October 7-11, the spot trading volume of construction steel including rebar, wire rod and bar-in-coil among the 237 steel traders Mysteel tracks nationwide averaged just 141,183 tonnes/day, lower by 11.4% from the previous five days' average prior to the September 28 start of the holiday.
Meanwhile, domestic steel prices show signs of losing steam this month as demand has not improved substantially. As of October 11, China's national price of HRB400E 20mm dia rebar, a barometer of the country's spot steel-market sentiment, had lost some Yuan 43/tonne ($5.9/t) from that on September 28 to reach a one-month low of Yuan 3,798/t including the 13% VAT, according to Mysteel's assessment.
Steel inventories held by traders in Mysteel's former smaller sample across just 35 cities had also reversed down by 1.2% or 134,300 tonnes on week to 11.1 million tonnes as of October 12.
Source:Mysteel Global
