Posted on 10 Nov 2023
Inventories of the five major carbon steel items held by Chinese traders tracked by Mysteel decreased for the fifth successive week over November 3-9, thinning by another 670,600 tonnes on week, the latest survey results show. Behind the continuous fall in stocks was the sharp decline seen in steelmakers' production and the comparatively sound market sentiment, sources said.
The stocks survey among traders in 132 cities nationwide under Mysteel's tracking found that their inventories of rebar, wire rod, hot-rolled coil, cold-rolled coil and medium plate had fallen by 4.1% on week to reach a ten-month low of 15.7 million tonnes as of November 9.
Among the five finished steel products, rebar stocks declined the most, tumbling by 292,400 tonnes on week to 5.7 million tonnes by Thursday and touching a new low for the year, according to the survey. Nonetheless, the pace had slowed from the 365,300 tonnes-decline in the previous week, Mysteel Global notes.
Although spot trading had been buoyed by the strengthening domestic steel prices, survey respondents pointed out that the blizzards, sleet and plummeting temperatures that swept through much of the country this week have moderately dampened demand from building contractors working on projects outdoors, especially those in parts of North and Northeast China.
The trading volume of construction steel including rebar among the 237 traders Mysteel follows across the country softened by 4.8% on week to 159,836 tonnes/day over November 2-8.
"Long steel demand in our area began to shrink as the weather grew colder, and spot trading in the local market remains weak despite the rise in rebar futures prices," said a source in North China's Inner Mongolia. On Thursday, he said that the 16 steel traders he contacts across his city had concluded deals involving 4,500 tonnes, compared with the 5,000 tonnes contracted on Wednesday.
On the other hand, the decline in stocks reflected lower finished steel output, with production the five steel items at the 184 Chinese steel mills Mysteel samples over November 2-8 slumping by a large 371,600 tonnes or 4.1% on week to 8.7 million tonnes, a nine-month low.
Meanwhile, steel inventories held by traders in Mysteel's former smaller sample across just 35 cities had slid by 4% or 390,900 tonnes on week to 9.5 million tonnes as of November 9, a ten-month low.
Source:Mysteel Global
