Posted on 06 Jun 2022
Finished steel inventories held by traders across China declined again during May 27-June 2, shrinking by another 0.6% on week - albeit at a slower rate than the 1.2% decline seen in the prior week, Mysteel's latest weekly survey showed. Market sources warned that the pick-up in demand after the decline in the nation's COVID-19 caseload currently may be impeded as the season of scorching weather, storms and occasional floods is approaching.
The stocks of rebar, wire rod, medium plate, hot-rolled coil and cold-rolled coil among traders in the 132 Chinese cities Mysteel checks decreased for the fourth straight week to refresh a 3.5-month low of 23.7 million tonnes as of June 2, or falling 141,400 tonnes on week. The volume was still 10.5% higher on year however, Mysteel's data showed.
Among the five major steel items, stocks of medium plate saw the largest on-week decline with the total shedding 98,100 tonnes to 2.2 million tonnes by June 2. In contrast, rebar stocks rose for the first time in three weeks, gaining by 11,200 tonnes during the period to 11.8 million tonnes, according to the survey.
An industry watcher told Mysteel Global that the recent rebound in steel prices reflected improved market sentiment in response to supportive measures from the central government and the easing of lockdown constraints in Shanghai from Wednesday.
On May 31, the country's State Council announced a package of 33 measures covering fiscal, monetary, investment and industrial policies, to give a boost to economic growth, as Mysteel Global reported.
China's national price of HRB400E 20mm dia rebar strengthened for the fourth successive working day on June 1, rising by Yuan 36/tonne ($5.4/t) on week to Yuan 4,802/t including the 13% VAT, according to Mysteel's assessment.
The inventories of finished steel products held by traders in Mysteel's former smaller sample across just 35 cities fell for the fourth consecutive week too, nudging down 0.2% or 36,900 tonnes on week to 15 million tonnes as of June 2, or 8% higher on year.
Source:Kallanish
