Posted on 29 Apr 2022
Chinese steel traders saw their inventories of major finished steel products decline further over April 22-28, Mysteel's latest survey data showed, as some end-users replenished stocks in advance of the Labour Day holiday over April 30-May 4. Actual steel demand stayed firm in some regions, while deliveries from mills to the market slowed down due to COVID disruptions, sources said.
The stocks of rebar, wire rod, hot-rolled coil, cold-rolled coil and medium plate held by the traders Mysteel tracks in 132 cities decreased for the eighth week in a row, down 623,400 tonnes or 2.5% on week to total 24.8 million tonnes as of April 28, as against the 1.7% on-week decline in the prior survey period, according to the weekly stocks survey.
All the five major finished steel items experienced on-week falls in their stocks, among which those of rebar posted the largest drop on week, down 334,600 tonnes to 12.5 million tonnes, or reaching a two-month low. In parallel, wire rod stocks had eased to a 2.5-month low of 4 million tonnes by April 28, registering an on-week decline of 133,400 tonnes.
"There are fewer trading days in the spot market next week due to the short vacation, but most steel mills will not slow their normal operations, so it's anticipated that traders' inventories may see a small build-up," said an industry watcher based in South China.
As of April 27, China's national price of HRB400E 20mm dia rebar had shed Yuan 72/tonne ($10.9/t) on week to Yuan 5,068/t including the 13% VAT, and market sentiment had weakened caused by the significant falls in rebar futures, sources said.
The inventories of finished steel products held by traders in Mysteel's former smaller sample across just 35 cities dwindled for the third straight week, shrinking by 456,100 tonnes or 2.8% on week to 15.7 million tonnes as of April 28.
Source:Mysteel Global
