As of November 16 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 12.092 million mt, up 7,000 mt as compared to the previous week and indicating the first week-on-week increase in the past six weeks, according to the China Iron and Steel Association (CISA). Meanwhile, China’s total finished steel inventory on the date in question was down 1.072 million mt year on year.
In particular, as of November 16 inventory of rebar in China indicated a slight increase of 6,000 mt week on week, domestic wire rod inventory registered a week-on-week increase of 34,000 mt, though hot rolled coil inventory decreased by 27,000 mt compared to the previous week. In addition, domestic inventories of cold rolled coil and plate were respectively up 2,000 mt and down 8,000 mt week on week.
In the given week, finished steel inventory in northern China witnessed an increase due to heavy snow and unfavorable transportation conditions. While the current finished steel demand in southern China remains strong, market demand in the region may decrease with the commencement of the winter season. China’s finished steel inventory may be at the start of a period of rising movement, according to the CISA.