SHANGHAI, Nov 15 (SMM) – Inventories of construction steel rebar in China registered a fifth straight week of decline as of November 14, but the pace slowed as the removal of environmental output curbs in Jiangsu and Hebei provinces allowed steelmakers to recover. 

Solid demand in south China drove the continued slide in rebar stocks, as local construction sites stepped up operation in light of the earlier-than-usual 2020 Chinese New Year holiday. 

SMM learned that supply shortage of some specifications in the south remained in place as shipments from the northern regions were backlogged at ports amid unfavourable weather.

SMM retains the view that the large volumes of invisible stocks will be the key downside risks to near-term spot rebar prices. 

According to SMM data, rebar inventories at steelmakers stood at 2.06 million mt as of Thursday November 14, down 4.7% from November 7, slower than a drop of 9.2% last week. 

Inventories across social warehouses declined 9.1% on the week to stand at 3.03 million mt, following an 8.7% drop in the previous week. 

Overall inventories of rebar, including stocks across steelmakers and social warehouses, slid 7.3% and posted 5.09 million mt as of November 14, slowing from a decline of 8.9% in the prior week. 

On a yearly basis, overall inventories remained 0.7% higher as of November 14.