Posted on 31 Dec 2021
Over December 24-30, total stocks of the five major finished steel products at commercial warehouses in China's 132 cities under Mysteel's survey declined for the 12th straight week but at a slower pace, down by a tiny 0.3% or 36,600 tonnes on week to perch at an 11.5-month low of 13.6 million tonnes, against the 3.5% fall in the prior week, and inventories may gradually build up towards the year-end, Mysteel noted.
Among the total five items, all but medium plate continued posting on-week drops in inventories, with the decline in hot-rolled coil being the largest at 92,900 tonnes on week to 2.85 million tonnes, a low since January 8. Meanwhile, stocks of rebar nudged down by 11,800 tonnes on week to 5.17 million tonnes as of December 30.
Medium plate, in contrast, saw its stocks reverse from seven successive weeks of declines, up by 99,200 tonnes on week to reach 1.8 million tonnes by December 30.
The 184 Chinese steel mills under Mysteel's survey saw their production of these five products reverse up by 2.2% or 190,700 tonnes on week over December 23-29 to approximately 9 million tonnes, and the increment was mainly because the modest production resumption among some steelmakers.
China's national price of HRB400E 20mm dia rebar under Mysteel's assessment hit a one-month low of Yuan 4,740/tonne ($744/t) including the 13% VAT by December 29, or having reversed down by Yuan 110/t on week due to the market uncertainties and tepid demand from end-users.
By December 30, the decline in inventories of these five steel products under Mysteel's smaller-scale survey held by trading houses in the 35 Chinese cities is also seen decelerating, edging down by 0.4% or 36,800 tonnes on week to 8.75 million tonnes.
Source:Mysteel Global
