SHANGHAI, May 10 (SMM) – Purchases before Labour Day lowered China's inventories of rebar across smelters and social warehouses in the week to Thursday May 9, but the drop narrowed from the week before the holiday, indicating weak growth in demand.
SMM data showed that overall inventories shank 1.8% and posted 8.37 million mt as of May 9 after they shrank 4.4% two weeks ago.
As of May 9, inventories across social warehouses stood at 6.28 million mt, down 2.2% on the week. In-plant stocks across smelters dipped 0.5% on the week, after they expanded 8.9% a week ago as steelmakers maintained normal operation during the holiday.
This week, the domestic average price of rebar continued to increase 7.9 yuan/mt on the week, to 4,192.1 yuan/mt.
SMM expects steel fundamentals to face downward pressure in the weeks ahead as the start of the rainy season in May depress demand.