SHANGHAI, May 24 (SMM) – Brisk demand from construction lowered inventories of rebar across steel plants faster than expected, and this extended declines in overall rebar stocks in the week to Thursday May 23. 

SMM data showed that overall inventories, including stocks across steelmakers and social warehouses, shank 4% on the week and posted 7.8 million mt as of Thursday May 23, after a drop of 2.9% in the previous week. On a yearly basis, inventories remained some 1% higher as supplies expanded. 

As of May 23, inventories across steel plants decreased by 4.1% on the week, and by 7.7% on the year, to stand at 2.05 million mt, after they built up 2.1% in the prior week. Stocks across social warehouses stood at 5.76 million mt, down 4% on the week but up 4.6% on the year. 

Spot trades of rebar mostly occurred in the first half of this week. This, together with higher futures prices, bolstered spot offers on Wednesday May 22 and sidelined downstream consumers through the second half of the week. 

The domestic average price of rebar rebounded 6.3 yuan/mt, to stand at 4,146 yuan/mt in the week to Thursday May 23, after a decline of 48 yuan/mt last week.