SHANGHAI, Nov. 30 (SMM) – According to Steelease statistics, steel inventories in Jingtang Port, Tianjin Port, Changshu Port and Yingkou Port are 550,000 mt, 320,000 mt, 210,000 mt and 720,000 mt respectively in as of the end of November. Total steel inventory at major ports has dropped 14.4% from the previous month.

Steelease believes China crude steel output is exhibiting a declining trend while steel markets are destocking. Due to tightness in capital supply, low order volumes have led to a continuous weak demand. Lower operating rates in construction and infrastructure industries entering the winter also mean weaker support for steel demand. As more and more steel mills start maintenance, steel output also dropped significantly, leading slight slips in port inventories.

Spot steel prices remain weak this month and iron ore prices have reached low levels. Steelease expects crude steel output to drop slightly during the following month. With downstream demand remaining weak, Steelease also expects steel inventories at major ports to rise slightly in December.