In late December (December 21-31), overall domestic inventories of the five main finished steel products in 20 cities of China totaled 7.3 million mt, up 10,000 mt or 0.1 percent compared to mid-December (December 11-20).
In particular, as of December 31, domestic inventories of hot rolled coil (HRC) and common medium plate amounted to 1.33 million mt and 0.93 million mt, up 0.8 percent and 6.9 percent respectively, compared to December 20. Stocks of wire rods also increased in the same period, by 35 percent to 1.19 million mt.
However, cold rolled coil (CRC) and rebar inventories came to 0.93 million mt and 2.92 million mt, down 1.1 percent and 3.0 percent, respectively, compared to December 20.
Demand for steel in late December was slack amid extremely cold weather in China, the declining trend in ferrous metal futures prices and the New Year holiday. Demand for steel may slacken further in January due to the approaching Chinese New Year holiday and sporadic Covid-19 cases in many regions, which will likely push up steel inventories.
