Planned output of construction steel rebar across China’s major blast furnace steelmakers in May rose 15.24% from the planned production in April to 9.16 million mt,  on the back of steelmakers return from maintenance and diverted capacity to rebar in the chase of higher profits, showed an SMM survey.

Chinese electric arc furnace (EAF) steelmakers operating rates continued to edge higher as of early May, driven by the resumption of producers in central China as the spread of the coronavirus has stalled. However, the rally in operations will be constrained due to a surge in feedstock steel scrap prices. 

Nearly 20 major steelmakers in China have raised their quotes for spot construction steel sales following a substantial rally in futures that began in early April. The increases in quotes, varying from 10 to 50 yuan/mt, did not mute trades, SMM research found.

Inventories of steel rebar across Chinese steelmakers and social warehouses fell for the fourth consecutive week as of April 9 with the steady recovery of demand as construction work has normalised. Compared with the same period a year earlier, however, the stocks continued their buildup, which remains the headwinds facing spot prices of rebar. 

Stocks of copper across Shanghai bonded area declined for the second consecutive week as of April 3, falling 5,200 mt from a week ago to 333,800 mt, showed SMM data.

Inventories of zinc ingot across Shanghai-bonded areas stood at 75,400 mt as of Friday April 3, unchanged from a week ago, showed SMM data.

Social inventories of copper cathode in south China’s Guangdong province continued to trend downsides, falling for the fourth consecutive week as of Friday April 3. 

Inventories of aluminium billet in China fell for the fourth consecutive week as of April 2, due to greater deliveries and reduced arrivals.  

Social inventories of long steel (including wire rods and rebar) in Guangzhou continued to trend lower in the week ended April 1, falling 2.1% to 2.25 million mt, 26.01% higher than the same period after the Lunar New Year holiday last year.

But the week-on-week increase continued to slow from a 5.49% rise last week