China Steel Inventories Fall 1.8% as Output Rises
Chinese trader inventories of five major carbon steel products fell for a third consecutive week during October 23-29, declining 1.8% to 17.2 million tonnes, while combined output edged higher and physical-market trading remained subdued.
- Five-product inventories: 17.2 million tonnes, down 1.8% or 309,000 tonnes W/W.
- Rebar stocks: 5.67 million tonnes, down 4% or 233,700 tonnes.
- HRC stocks: 4.82 million tonnes, down 1.5% or 74,700 tonnes.
- Five-product output: 7.98 million tonnes, up 0.7% or 57,500 tonnes W/W.
- Prices: HRB400E 20mm rebar fell Yuan 21/t W/W, while Q235 4.75mm HRC declined Yuan 49/t.
China's latest inventory decline is not a straightforward signal of stronger steel demand. Trader stocks fell for a third consecutive week, led by rebar and HRC, but Mysteel simultaneously recorded slightly higher five-product output, weaker physical trading and lower rebar and HRC assessments. For buyers and traders, the combination points to inventory reduction occurring in a market where demand remains subdued rather than a clear tightening of finished-steel supply.
Retail stocks of the five major carbon steel products held by Chinese traders declined for a third consecutive week during October 23-29, according to Mysteel's latest survey.
As of October 29, combined inventories of rebar, wire rod, hot-rolled coil, cold-rolled coil and medium plate held across the 429 commercial warehouses in 132 cities monitored by Mysteel totaled 17.2 million tonnes.
That was down 1.8% or 309,000 tonnes week over week.
Rebar and HRC Lead Inventory Decline
Stocks of rebar, wire rod, HRC and CRC all declined during the week, with rebar and HRC accounting for the largest reductions.
Rebar inventories fell 4% or 233,700 tonnes to 5.67 million tonnes.
HRC stocks declined 1.5% or 74,700 tonnes to 4.82 million tonnes.
Medium plate inventories moved in the opposite direction, rising for a sixth consecutive week.
Steel Output Edges Higher
Mysteel said improving, though still limited, profitability among domestic steelmakers encouraged a modest increase in production during the survey period.
Combined output of the five carbon steel products totaled 7.98 million tonnes during October 22-28, up 0.7% or 57,500 tonnes week over week.
Trading Remains Subdued as Rebar and HRC Prices Fall
Physical-market trading remained subdued. Daily trading volume for rebar, wire rod and bar-in-coil among the 327 trading houses tracked by Mysteel averaged 87,292 tonnes/day during October 22-28, down 4.1% or 3,732 t/d from the previous week.
Mysteel assessed the national price of HRB400E 20mm-diameter rebar at Yuan 3,302/tonne ($495.6/t) on October 28, down Yuan 21/t week over week.
The national assessment for Q235 4.75mm HRC fell by Yuan 49/t over the week to Yuan 3,324/t on the same day.
Smaller Warehouse Sample Also Shows Decline
Finished steel inventories in Mysteel's smaller sample of 144 warehouses across 35 Chinese cities also declined.
The total stood at 10.31 million tonnes as of October 29, down 2.9% or 311,000 tonnes from October 22.
Source: Mysteel Global.
