The total inventories of the five main steel products, including rebar, wire rod, hot rolled coil (HRC), cold rolled coil (CRC) and flat products, at the surveyed mills reached 6.6 million tonnes.
Physical steel trading has contracted further as China entered its traditional off-season for steel consumption, given hot and humid weather conditions across much of the country, Mysteel Global notes.
From 17 to 23 June, the daily trading volume of construction steel, which includes rebar, wire rod and wire rod, among 237 Chinese traders on Mysteel Track decreased to an average of 191,311 tons per day, up 18,538 tons per day, or 8.8% over the previous year. week, which indicates weak demand in the domestic market.
Finished steel production at the 184 surveyed plants fell to 11.1 million tonnes from June 17 to 23, mainly due to an increase in the number of refurbishment stops during this period. The study found that production fell 0.3% in a week after rising in the previous three weeks.
However, market participants are pessimistic about the state of the domestic steel market in the near term, as demand is likely to remain weak in the off-season, but steel production remains at a very high level, despite the decline in the week.
Steel prices on the domestic market have dropped significantly over the past week: the national price of HRB400E rebar with a diameter of 20 mm reached 4,973 yuan per tonne (768 USD per tonne), including 13% VAT, as of 23 June, down 191 yuan over the week per ton. by Mysteel.
Inventories of five major steel products in commercial warehouses in 132 cities across the country also increased in the second week of June 18-24, rising another 1.7% in a week to 22.3 million tonnes, the study found.