SHANGHAI, Jul 5 (SMM) – China's inventories of rebar again accumulated, in the first week of production curbs for July, as high margins continued to boost production across steel mills and downstream purchases waned in the second half of the week on market talk about loosened cuts in major steelmaking cities in the north.
An SMM survey found that the actual implementation of cutbacks across steel mills was more stringent than any previous round since winter. Tighter controls on production may ease the inventory pressure in the weeks ahead.
SMM data showed that overall inventories, including stocks across steelmakers and social warehouses, grew 0.7% on the week and posted 7.9 million mt as of Thursday July 4, after fell 0.8% in the prior week. On a yearly basis, inventories stood 15.7% higher, expanding from a growth of 12.8% last week.
As of July 4, inventories across steel plants continued to shrink 1.9% on the week, to stand at 2.16 million mt, as speculative purchases from traders depleted in-plant stocks.
Inventories across social warehouses stood at 5.74 million mt, up 1.8% on the week and up 20.7% on the year, both accelerating from growth a week ago.