Inventories of the five main finished steel products at 184 Chinese steel mills sampled in Mysteel's weekly survey fell to 5.49 million tons, a low of 8.5 months, during September 16-22, mainly due to the decline in production driven by stringent energy restrictions.
Total inventories of the five main steel products, consisting of rebar, wire rod, hot rolled coil, cold rolled coil and medium plate, fell for the fifth week in a row during the 16-22 September period, seeing a sharp 6% decrease from the previous week. 2% weekly decrease.
According to the study, rebar and wire rod inventories recorded the biggest decrease in volume, down 269,900 tons and 80,700 tons on a weekly basis, respectively, with production declines.
From 16 to 22 September, the total production of the five main steel products among the 184 mills surveyed fell to 9.2 million tons in the third week, the lowest level since April 2020, down 6.2 percent week on week. Rebar production fell by 361,800 tons. accounting for approximately 60% of the total decline in the five steel items.
“About 70% of the rebar rolling lines in Jiangsu (Eastern China) have been suspended due to electricity usage restrictions, and some other rebar mills are not operating at full capacity,” a market watcher in Shanghai said.
China's domestic steel prices, especially long steel products prices, have risen steadily as the market sentiment improves with the significant decline in steel production. As of September 22, the national price of HRB400E 20mm diameter rebar rose another RMB 197/t weekly, with a four-month high of RMB 5,754/t ($889/t) including 13% VAT, according to Mysteel's data.
Among the 237 traders of Mysteel monitors, the rebar, wire rod and rod-in-bar spot trade volume increased to an average of 229,835 t/d on September 16-22, with a significant reversal of 23,932 t/d, or 11.6%. the week after the withdrawal from the previous week.
According to the survey, inventories of five steel products in commercial warehouses, which Mysteel tracks in 132 cities, fell further for the eighth week compared to September 17-23, down 2% week on week to 21.7 million tons, a three-month low.
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