SHANGHAI, Jun 28 (SMM) – China's inventories of rebar failed to extend their increases this week as new, intensified production curbs in Tangshan lowered steel supply and higher steel prices boosted speculative purchases.
Suspended steelmakers that produce with electrical arc furnaces (EAFs) currently have no plan to resume even as a surge in spot prices of rebar narrowed their losses.
SMM data showed that overall inventories, including stocks across steelmakers and social warehouses, fell 0.8% on the week and posted 7.84 million mt as of Thursday June 27, after accumulated 1.4% in the prior week. On a yearly basis, inventories stood 12.8% higher, smaller from a growth of 16.2% last week.
As of June 27, inventories across steel plants lost 5.4% on the week, to stand at 2.2 million mt, after a prior buildup of 2.1%. Stocks across social warehouses stood at 5.64 million mt, up 1.2% on the week and up 16.7% on the year. The rates barely changed from a week ago.
Speculative stockpiling accounted for the lower inventories across steel mills. SMM learned that brisk purchases have driven producers in the east to limit shipment as of Thursday June 27.