Social inventories of long steel in Guangzhou gain 24% on week

This is a roundup of China's metals weekly inventory as of July 2.

Social inventories of long steel (including wire rods and rebar) in Guangzhou decreased 114,700 mt, in the week ended April 7 to 1.91 million mt, showed SMM data. Stocks were 336,100 mt lower than the same period last year.

Social inventories of long steel (including wire rods and rebar) in Guangzhou increased 5.57%, or 123,500 mt, in the week ended March 3 to 2.34 million mt, showed SMM data. Stocks were 0.22% lower than the same period last year.

The China Iron and Steel Association (CISA) reported that crude steel output across major mills in China averaged 2.18 million mt per day in the last 11 days of January, down 1.87% from mid-January and up 9.22% from the same period a year ago.

Inventories of rebar across Chinese steelmakers and social warehouses stood at 8.35 million mt as of January 28, up 15.7% from a week ago. From the time dimension of the lunar calendar, stocks are up 33.9% from a year earlier.

China steel rebar inventories continued to accelerate increases this week.

The China Iron and Steel Association (CISA) reported Wednesday that crude steel output across major mills in China averaged 2.2 million mt per day in the first 10 days of December, up 4.6% from late November and up 11.96% from the same period a year ago.

Social inventories of long steel (including wire rods and rebar) in Guangzhou decreased 2.15%, or 28,900 mt, in the week ended October 28 to 1.32 million mt, showed SMM data. Stocks were 90.6% higher than the same period last year.

Xintian Steel Group Zhasan Iron & Steel was required to eliminate all of its capacity to comply with Tianjin’s steel industry policies following the issuance of Work Plan to Fight and Prevent Pollution in 2019 on July 3, 2018. As of September 17, 2020, Zhasan Iron & Steel has shut down completely, resulting in a daily loss of 8,000 mt of pig iron output. The mill mainly produced steel billets and had two 1,260 m³ blast furnaces and two 120 mt converters, with annual steel capacity of 3 million mt.

Operating rates of blast furnaces (BFs) at Chinese steelmakers extended declines as decreased profits prompted steel mills to conduct maintenance.