As of October 26 this year, inventory of the main finished steel products (plate, hot rolled coil (HRC), cold rolled coil (CRC), rebar and wire rod) in 26 major steel markets in China totaled 12.43 million mt, down 274,000 mt as compared to the previous week and indicating a week-on-week decline for three straight weeks after the National Day holiday, according to the China Iron and Steel Association (CISA). Meanwhile, China's total finished steel inventory on the date in question was down 1.90 million mt year on year, reaching the lowest level since 2010.
As of October 26, three of the main finished steel products indicated declines in inventory on week-on-week basis. In particular, inventory of rebar indicated decreases of 154,000 mt week on week and 762,000 mt year on year, recording the lowest level year to date. As of the same date, wire rod inventory and hot rolled coil inventory in China decreased by 22,000 mt and 102,000mt respectively, both week on week. Although domestic inventories of cold rolled coil and plate indicated increases on week-on-week basis, the increase of cold rolled coil and plate both was less than 10,000 mt week on week.
Due to traders' sales prices staying below the ex-mill prices as well as their cautious attitudes toward the future market, inventory of finished steel in China maintained decline amid uptrend of finished steel prices. According to the traditional changes of finished steel inventory, the decrease may continue to December this year.