As of December 14 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 11.725 million mt, down 160,000 mt compared to the previous week and down 1.156 million mt year on year, according to the China Iron and Steel Association (CISA).
In particular, inventory of rebar indicated increases of 8,000 mt week on week and 211,000 mt year on year. As of the same date, hot rolled coil inventory in China was down 70,000 mt compared to the previous week, indicating the eighth consecutive week-on-week decline and recording the lowest level since mid-July 2009. Meanwhile, wire rod inventory indicated a week-on-week decrease of 40,000 mt. Domestic inventories of cold rolled coil and plate were respectively down 25,000 mt and 33,000 mt week on week.
In the given week, China’s overall finished steel inventory indicated a decline due to favorable market demand resulting from strong railway construction investment as well as increased automobile production and sales in November. Meanwhile, coming towards the end of the year slack stocking activity by traders due to limited availability of funds also contributed to the decline in finished steel inventory.