Drop in rebar stocks slowed down, despite five straight weeks of decline

As of November 9, a total rebar inventory in China declined for five straight weeks. Rebar inventory last week dropped by 254,400 mt WoW, with social and in-plant stocks dipping 186,300 mt and 68,000 mt respectively. The drop in rebar stocks slowed down last week. Recently, profits of steel mills improved amid rising steel prices, but elevated costs curbed the margins of BF steel mills. Therefore, limited room will be left for rebar supply to increase. To sum up, a high likelihood of shrinking rebar stocks will be reported this week.