As of March 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 21.751 million mt, up 1.367 million mt week on week and constituting the 11th 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 2.932 million mt higher compared to the same time last year.
In particular, in the week ending March 1 inventory of rebar rose for the 14th consecutive week on week-on-week basis, reaching over 10 million mt. Meanwhile, wire rod inventory in China also exceeded 3 million mt as of the same date, reaching a new high. As of March 1, cold rolled coil inventory and plate inventory in China increased by 50,000 mt and 40,000 mt respectively, while domestic inventory of hot rolled coil was up 150,000 mt, all on week-on-week basis.
While the Chinese domestic steel market has witnessed little improvement in demand, local steelmakers have increased their production. China’s daily crude steel output exceeded 2 million mt in mid-February (Feb. 11-20). Downstream demand is expected to increase gradually in March, while the steel market is also expected to enter a destocking phase.