Stocks of major rolled metal products at 184 Chinese steel mills surged from October 1-8 to a five-month high of 7.1 million tonnes after declining for five weeks as the domestic steel market was calm as the country celebrated According to the latest weekly poll Mysteel, during this period is a national holiday during this period.
The total stocks of the five main finished steel products, including rebar, wire rod, hot rolled coil, cold rolled coil and middle plate, at the stations of these plants increased by 10.4% compared to the period of September 24-30, and among the total According to the latest research, the stock of wire rod rose sharply by 18.3% for the week of October 1-8.
“It is normal for steel inventories to recover during a long holiday (October 1-8) due to a slowdown in domestic end-consumer demand, while production at domestic steel mills is stable,” a market source from Zhejiang Province in East China.
Between 1 and 7 October, the total production of these five steel products among the steel producers surveyed was 10.7 million tonnes, down 1.8% from 24-30 September, but still 5.8 % higher than last year, according to other data from Mysteel. poll.
Stocks of these five steel products at traders in 132 Chinese cities also fell to 22.9 million tonnes in October 1-8, up 6.6% from September 25-30, or in contrast to a weekly drop of 4.9 % before the holiday is reported.
In the near future, some market participants are optimistic, citing the fact that October is the traditional peak season for steel consumption in China, and many end users are expected to return to the market soon to replenish their stocks after the long holidays.
Notably, however, finished steel inventories at both Chinese steel mills and traders have remained high this year, still 37% higher than in early October, which is and may weigh on domestic steel prices in China.