SHANGHAI, Oct 19 (SMM) – Accelerated operation at construction sites shrank China's in-plant and social inventories of rebar to nearly a three-year low as of Thursday October 18. This marked the second consecutive week of decline in overall stocks, SMM data showed.
High profit margins, up to 1,153 yuan/mt in rebar production, bolstered destocking enthusiasm across steel mills. This also accounted for the decline in inventories.
Inventories across steel mills stood at 1.78 million mt as of October 18, down 9.2% from a week ago and down 31.1% from a year ago. Social stocks declined 6.9% on the week and dipped 11.2% on the year to stand at 4.12 million mt as of Thursday.
Overall inventories shrank to 5.9 million mt as of Thursday, down 7.6% on the week and 18.3% on the year.
Rebar inventories in Guangzhou of Guangdong province also fell on the week ended October 18, SMM data showed.
