According to a report released by the China Iron and Steel Association (CISA) on December 29, overall domestic inventories of the five main finished steel products in China as of December 25 this year totaled 8.7797 million mt, down 118,400 mt month on month. It is expected that finished steel inventories will increase rapidly in January of the coming year.
Currently, most Chinese steel producers have cut outputs due to the traditional off-season amid cold winter weather conditions. However, with the Spring Festival approaching soon, demand for finished steel will remain slack and finished steel inventories in China will increase rapidly in the coming period. It is thought that China’s finished steel prices will likely indicate a slight upward movement at the start of January, but will subsequently switch to a declining trend.