[SMM Analysis] Construction Steel Destocking Slows Down Amid Sluggish Demand

This week, most steel mills on the supply side maintained their current production pace, while a few EAF steel mills resumed production, leading to a slight increase in construction steel production. On the demand side, heavy rainfall in east China and central China affected outdoor construction site work pace, and end-user procurement was mostly driven by low-price rigid demand. According to SMM statistics, both mill inventory and social inventory continued to destock, but the destocking pace was slower than the same period last year. Total construction steel inventory stood at 9.3687 million mt, down 301,000 mt WoW, or -3.11% WoW, indicating a slightly sluggish destocking pace.