[SMM Analysis] Futures and Spot Prices Weakened, Construction Steel Demand Shifted from Growth to Decline

Published: May 21, 2026 10:56

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According to SMM statistics, total construction steel inventory stood at 7.9854 million mt, down 154,200 mt WoW, or -1.9% WoW, with the destocking pace slowing down.

Supply side, EAF steel mills saw per-mt profit margins shrink this period, while scrap procurement difficulties persisted. Some regional EAF steel mills reduced operating rates or halted production for maintenance. Meanwhile, several blast furnace steel mills completed routine maintenance and resumed production as planned, driving continued growth in overall construction steel production. Demand side, futures and spot prices continued to weaken this period, with market opinions diverging on future trends. Most participants maintained a wait-and-see sentiment in the short term, trading activity was relatively mediocre, and end-user purchases were mostly limited to low-priced rigid demand. According to SMM statistics, mill inventory and social inventory showed slight divergence. Traders were more cautious in purchasing, slowing the transfer of inventory from mills to social channels. Combined with rising steel mill production, mill inventory saw slight accumulation, while social inventory continued to decline. Total construction steel inventory stood at 7.9854 million mt, down 154,200 mt WoW, or -1.9% WoW, with the destocking pace slowing down.

Data Source Statement: Except for publicly available information, all other data are processed by SMM based on publicly available information, market communication, and relying on SMM‘s internal database model. They are for reference only and do not constitute decision-making recommendations.

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