Steel inventories in China continue to rise

Steel inventories in China have been steadily increasing since the end of December, with a further 1.7 million tons added between February 23 and 29.

There was an increase in steel consumption as workers slowly returned to construction sites and factories after the Chinese Lantern Festival. 

Inventories of five main final steel products, including rebar, wire rods, hot-rolled coil, cold-rolled coil, and medium plate, held by traders reached 28.7 million tons as of February, marking a weekly increase of 6.4%. However, this increase was lower compared to the previous week. 

Rebar and wire rod inventories saw the largest increases. Rebar inventories rose by 1.2 million tons weekly, reaching 14 million tons, while wire rod inventories increased by 4.1 million tons compared to the previous year, reaching 339,200 tons. 

Production of the five main steel products by 184 Chinese steel producers across the country saw a pause after a four-week decline, with a 3.1% weekly increase to 8.2 million tons. 

It's noted that the overall increase in steel demand in China is weak. The domestic real estate market is sluggish, and there hasn't been a significant increase in the infrastructure sector.