Posted on 09 Aug 2021
The stocks of finished steel products held by Chinese trading houses monitored by Mysteel reversed down over July 30-August 5 after seven straight weeks of gains, with the inventories dipping by an albeit tiny 0.7% on week, according to the weekly stocks survey. Some end-users replenished stocks when steel prices showed signs of stabilizing, market sources said.
As of August 5, total inventories of the five major carbon steel products comprising rebar, wire rod, hot-rolled coil (HRC), cold-rolled coil (CRC) and medium plate held by the surveyed traders in 132 cities under Mysteel’s tracking had slipped by 166,400 tonnes on week to reach 23.3 million tonnes.
Among the five major items, inventories of rebar, wire rod, HRC and CRC all posted on-week declines, while stocks of medium plate grew on week. The data showed that the wire rod stocks declined the most, with the volume dropping 76,800 tonnes on week to 3.19 million tonnes. Conversely, medium plate stocks swelled by 5,500 tonnes on week to 2.43 million tonnes.
A meeting among members of the Central Committee’s Political Bureau on July 30 had called for stability in supplies and prices of bulk commodities, as Mysteel Global reported. This encouraged some steel end-users to stock up tonnage, as steel prices are starting to stabilize, the source added.
Meanwhile, production of the five major steel products over July 29-August 4 was generally unchanged on week, edging up by a miniscule 3,600 tonnes or 0.04% on week to 10.1 million tonnes, according to Mysteel’s tracking.
The inventories of finished steel products in Mysteel’s former smaller sample across 35 cities reversed down by 170,700 tonnes or 1.1% on week to 15.1 million tonnes as of August 5.
Source:Mysteel Global
