Posted on 06 Jun 2025
The decline in finished steel inventories held by the Chinese traders in 132 cities sampled by Mysteel continued during the May 30-June 5 week, falling by 105,900 tonnes on week. However, the pace at which the stocks were leaving the traders' yards had slowed markedly, compared with the 507,000 tonne-drop in the prior week.
Survey respondents mainly attributed the slower destocking to waning demand in many parts of China, including northern and southern regions, caused by hot and humid weather that is impeding outdoor building activities.
As of Thursday, stocks of the five major finished steel items comprising rebar, wire rod, hot-rolled coil, cold-rolled coil and medium plate at traders' warehouses totalled 15.1 million tonnes, nudging down 0.7% on week.
Most of the stocks were rebars, with the total volume at 5.8 million tonnes as of Thursday, down 151,100 tonnes on week though this was smaller than the 324,600-tonnes fall a week earlier, the latest data showed. In addition, stocks of medium plate mounted the most, rising by 53,300 tonnes on week to roughly 2 million tonnes.
On Thursday, China's National Meteorological Center predicted heavy rain would hit parts of Central and East China over June 6-10. Meanwhile, northern regions will experience a scorching heatwave with temperatures rising to 35-40 degrees Celsius, the center warned.
A market insider said that besides dull demand, last weekend's Dragon Boat Festival holiday (during May 31-June 2) had also slowed the destocking of steel inventories last week, as many traders temporarily closed their businesses for the festive celebration.
Finished steel stocks held by traders in Mysteel's smaller sample across just 35 cities thinned at a slower pace too, easing by 0.2% or 15,300 tonnes on week to hover at 9.3 million tonnes by Thursday, Mysteel's data found.
Source:Mysteel Global
