Posted on 18 May 2022
Rebar production among the 137 Chinese steel mills surveyed by Mysteel increased for the second week over May 5-11, rising by 0.9% or 26,300 tonnes on week to reach 3.1 million tonnes, as steel producers particularly those in Southwest's Guangxi and Sichuan and Northeast China's Jilin and Heilongjiang were eager to ramp up operations, according to Mysteel's weekly survey.
However, rebar output among the surveyed mills was still low when compared with the same period a year before, with the total tumbling by 16.5% on year, according to Mysteel's data.
Over the survey period, rebar rolling capacity utilization among the surveyed producers grew for the second week, edging up by 0.6 percentage point on week to 68%, while the operational rate among the rolling mills reversed down by 0.7 percentage point on week to 54.8%, Mysteel's surveys showed.
Spot steel prices across China trended down last week due to falling steel demand and softening raw material prices. As of May 13, the national price of HRB400E 20mm dia rebar for example, was assessed by Mysteel at Yuan 4,956/tonne ($732/t) including the 13% VAT, down Yuan 158/t on week. As of the same day, the Mysteel SEADEX 62% Australian Fines index had dipped by $10.35/dmt on week to $128.4/dmt CFR Qingdao.
Demand from end-users was constrained by COVID-induced restrictions and early monsoon downpours in the southern part of China over the past week, as reported. The trading volume of rebar, wire rod and bar-in-coil among the 237 traders Mysteel checks nationwide slid 14.3% on week to 147,113 tonnes/day on average over May 9-13.
In tandem with the higher output, rebar inventories at the 137 steel mills mounted for the third week, swelling by 6.1% or 206,800 tonnes on week to 3.6 million tonnes as of May 11, while the tonnage at commercial warehouses in the 35 Chinese cities Mysteel monitors had reversed down 4.2% or 377,900 tonnes on week 8.6 million tonnes by May 12.
Source:Mysteel Global
