As of January 18, inventory of the main finished steel products (plate, hot rolled coil (HRC), cold rolled coil (CRC), rebar and wire rod) in major steel markets in China totaled 14.346 million mt, up 329,000 mt compared to the previous week and constituting the fifth 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 22,000 mt lower compared to the same time last year.
In particular, inventory of rebar indicated an increase of 254,000 mt compared to the previous week, rising for the eighth consecutive week on week-on-week basis. As of the same date, wire rod inventory in China was up 44,000 mt week on week. Hot rolled coil inventory and plate inventory in China increased by 19,000 mt and 5,000 mt respectively, while domestic inventory of cold rolled coil was down 2,000 mt, all on week-on-week basis.
In early January (Jan. 1-10), Chinese steelmakers’ estimated crude steel output indicated an increase after several declines, which places pressure on the market from the supply side. However, on year-on-year basis, finished steel inventory in China as of January 18 witnessed a decrease. China’s finished steel inventory may increase further with the approach of the Spring Festival holiday