On the supply side this period, integrated steel mills saw unsatisfactory overall profit per ton for construction steel products. Some enterprises opted to cut production volumes or schedule maintenance for rolling lines. For electric arc furnace (EAF) mills, weighed down by high inventory pressure and sustained profit losses, a number of manufacturers in Southwest and East China have reduced operating hours or suspended production temporarily.
On the demand side, successive spells of high temperatures, typhoons and heavy downpours have noticeably slowed the pace of outdoor construction works. Besides, new infrastructure projects are mostly scheduled to commence in September. As a result, construction firms have relatively weak procurement demand for steel materials in the short run, and the market remains in the traditional off-season.
According to SMM statistics, both mill inventories and social inventories rose to varying degrees in the current period. The total inventory of construction steel stood at 8.543 million tons, rising by 64,200 tons month-on-month, a month-on-month increase of 0.76%, with the inventory accumulation pace picking up slightly.
