According to Mysteel's survey, the inventories of 184 Chinese steelmakers' five main carbon steel products: rebar, wire rod, hot rolled coil, cold rolled coil and middle plate continued to grow at a faster rate of 1.3 percent week on week than on 30 December. Survey respondents said this was due to further recovery in producers' production and overall weaker demand from end users.
The survey showed that the total stocks of the five steel products reached 4.26 million tons as of January 5th, up 54,400 tons from a week ago.
Between December 30 and January 5, the total output of the five main steel products among the sampled steelmakers recorded 9.28 million tons, up 2.6 percent week on week for the second week.
"Further growth in producers' output was within market expectations, as more domestic producers resumed normal operation in January after successfully achieving the targeted reduction in production in 2021," a market source in Shanghai said, adding that healthy profits spur factories to rise. he added.
From December 30 to January 5, the daily trade volume of rebar, wire rod and bar-in-bar among 237 Chinese traders was 150,433 tons/day, up 4,237 tons/day or 2.9% week on week, according to Mysteel's regular survey.
However, domestic steel demand is expected to remain sluggish in the near term as more end-users gradually suspend operations to prepare their firms for the Chinese New Year holiday from Jan. 31 to Feb. 6. Mysteel Global stated that its steel stocks will continue in the coming period.
From December 31 to January 6, the stocks of these five steel products at commercial warehouses in 132 Chinese cities, as part of Mysteel's research, reversed after a steady decline over the previous 12 weeks, increasing by 0.7 percent week on week to 13.7 million tons. .
Chinese domestic steel prices remained relatively high last week, while the national price of HRB400E 20mm diameter rebar reached Yuan 4,741/t ($743/t) including 13% VAT as of January 6, increasing Yuan 7/t.
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