As of December 28 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 11.88 million mt, up 107,000 mt compared to the previous week following a week-on-week increase of 48,000 mt in the previous week, according to the China Iron and Steel Association (CISA). Meanwhile, on the same date, finished steel inventory in China was down 1.021 million mt year on year.
In particular, inventory of rebar indicated an increase of 101,000 mt, while hot rolled coil inventory in China was down 5,000 mt, both compared to the previous week. As of the same date, domestic inventories of wire rod, cold rolled coil and plate were respectively up 4,000 mt, 2,000 mt and 5,000 mt on week-on-week basis.
The rapid increase in iron ore prices in December limited mills’ profit margins and this had a negative impact on their production activities. Meanwhile, shortages of funds at the end of the year also inhibited the flow of finished steel.