SHANGHAI, Nov 8 (SMM) – Inventories of construction steel rebar in China registered a fourth straight week of decline as of November 7, with lower stocks at steel mills accounting for most of the drop, as anti-smog measures in Hebei, Jiangsu provinces affected local production.
In south China, less rainy days than the previous years facilitated the release of construction demand, and this delayed the commencement of a traditional slack season.
However, it remains noteworthy that there are large volumes of invisible stocks en route as the 2nd China International Import Expo in Shanghai and some port closures in Guangdong province delayed the shipment's arrival.
With cargoes in shipment arriving and production at steel mills recovering after environmental curbs, spot prices of rebar may again face downward pressure in the near term, SMM expects.
SMM data showed that rebar inventories at steelmakers stood at 2.17 million mt as of Thursday November 7, down 9.2% from October 31, after the stocks fell 4.7% last week.
Inventories across social warehouses declined 8.7% on the week to stand at 3.33 million mt, following an 8.2% drop in the previous week.
Overall inventories of rebar, including stocks across steelmakers and social warehouses, slid 8.9% and posted 5.5 million mt as of November 7, accelerating from a decline of 6.8% in the prior week.
On a yearly basis, overall inventories remained 7.1% higher as of November 7.
