China’s retail steel stocks fall for 7th week
Posted on 17 September 2021
Stocks of five major finished steel products held by Chinese trading houses regularly canvassed by Mysteel recorded a seventh straight week drop over September 10-16, falling by 1.8% or 408,400 tonnes on week, according to the weekly stocks survey. The on-week fall in percentage points for the survey period was the same as that in the prior week.
The survey data showed that inventories of the five major steel products comprising rebar, wire rod, hot-rolled coil (HRC), cold-rolled coil (CRC) and medium plate at commercial warehouses in the 132 cities monitored nationwide declined to 22.2 million tonnes by September 16.
Among the total, the stocks of rebar, wire rod and medium plate showed on-week declines. The stocks of rebar declined the fastest, sliding by 300,100 tonnes on week to 10.7 million tonnes, while wire rod and medium plate saw their stocks slip by 88,500 tonnes and 37,000 tonnes respectively on week.
In contrast, the stocks of HRC and CRC gained moderately on week, with the former rising by 12,900 tonnes during the period to around 4 million tonnes, while the latter grew by 4,300 tonnes on week to reach 1.8 million tonnes.
As for production, output of the five steel products declined for the second week and at a faster pace over September 9-15, dropping by 3.6% or 369,600 tonnes on week to 9.8 million tonnes, or a new low since April 2020, according to Mysteel, reflecting stricter steel output curbs among mills complying with Beijing’s call for lower production this year.
As of September 16, the inventories of five finished steel products in Mysteel’s former smaller sample across 35 Chinese cities added up to about 14 million tonnes, down by 1.9% or 266,300 tonnes on week and also registering a seventh weekly decline in a row.