Posted on 09 Nov 2022
Rebar output among 137 Chinese steelmakers under Mysteel's survey reversed down over October 27-November 2, ebbing 2.1% or 64,700 tonnes on week to reach 2.99 million tonnes, according to Mysteel's survey, mainly as many steel mills in North China reined in production due to their persistent profit losses and the anticipation of weaker demand from end-users as the weather is turning cold.
Survey respondents pointed out that a slew of Chinese steel producers, especially those in North China's Shanxi and Hebei provinces, had posted significant on-week declines in their long steel output.
During the survey period, both operational rate and rebar rolling capacity utilization rate among the 137 sampled mills slid accordingly, with the former dipping 1.3 percentage points on week to 48.5%, and the latter down 1.4 percentage points on week to 65.5%, Mysteel's survey showed.
Meanwhile, Chinese steel prices had rebounded somewhat after the continual declines previously. For example, as of November 7, China's national price of HRB400E 20mm dia rebar had strengthened by Yuan 34/tonne ($4.7/t) on week to Yuan 3,917/t including the 13% VAT, according to Mysteel's assessment.
In parallel, Mysteel SEADEX 62% Australian Fines also recovered by $8.3/dmt on week to $87.7/dmt CFR Qingdao as of November 7.
Over November 1-7, the daily trading volume of construction steel comprising rebar, wire rod and bar-in-coil among 237 trading houses across China under Mysteel's tracking averaged 172,873 tonnes/day, or jumping 20% on week, though market insiders warned that steel demand may not improve substantially in coming months due to seasonal reasons.
As a result, rebar stocks at both mills and traders thinned further, with the tonnage at 137 steelmakers dwindling for the second week, down 5.2% or 105,200 tonnes on week to 1.9 million tonnes, and that at commercial warehouses in 35 Chinese cities shrinking for the fourth week, down 5.5% or 229,400 tonnes to near 4 million tonnes, Mysteel's data showed.
Source:Mysteel Global
