SHANGHAI, Nov 1 (SMM) – Inventories of construction steel rebar at steel mills in China fell this week, reversing a buildup from the prior week, as shipments from north to south China remained en route and the frequent anti-smog measures in different regions improved speculative buying.
Weakened consumption in the northern market amid cold weather triggered the delivery from north to south. This, together with the ongoing widespread environmental output controls in north China tightened supply of local material and lifited prices.
In the south China market, robust demand will support near-term spot prices even in light of the upcoming greater deliveries from the north.
SMM data showed that rebar inventories at steelmakers stood at 2.39 million mt as of Thursday October 31, down 4.7% from October 24, after the stocks rose 0.9% last week.
Inventories across social warehouses declined 8.2% on the week to stand at 3.65 million mt, following an 8% drop in the previous week.
Overall inventories of rebar, including stocks across steelmakers and social warehouses, slid 6.8% and posted 6.03 million mt as of October 31, accelerating from a decline of 4.7% in the prior week.
On a yearly basis, overall inventories remained 14.3% higher as of October 31.
