As of February 1, inventory of the main finished steel products (plate, hot rolled coil (HRC), cold rolled coil (CRC), rebar and wire rod) in the major steel markets in China totaled 15.491 million mt, up 695,000 mt compared to the previous week and constituting the seventh consecutive week-on-week increase, according to the China Iron and Steel Association (CISA).
Meanwhile, the total finished steel inventory in the Chinese market as of the given date was 1.88 million mt lower compared to the same time last year.
In particular, inventory of rebar indicated an increase of 440,000 mt compared to the previous week, rising for the 10th consecutive week on week-on-week basis. As of the same date, wire rod inventory in China was up 158,000 mt week on week. Hot rolled coil inventory and plate inventory in China increased by 64,000 mt and 32,000 mt respectively, while domestic inventory of cold rolled coil was up 1,000 mt, all on week-on-week basis.
China’s finished steel inventory may increase further with the absence of traders from the market due to the Spring Festival holiday. Although finished steel prices in China have indicated increases, market activity levels have been lower than expected. The increased finished steel inventory may exert a braking effect on the anticipated upward movement of domestic finished steel prices after the Spring Festival holiday.