Social inventories of primary aluminium ingots across eight consumption areas in China, including SHFE warrants, decreased 51,000 mt from last Thursday May 14 to 1.007 million mt as of Monday May 18.

Inventories of steel rebar across Chinese steelmakers and social warehouses accelerated their declines in the week ended May 14 as deliveries improved in various regions after the Labour Day holiday. 

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. 

Social inventories of primary aluminium ingots in China continued to fall sharply, propelled by strong demand and fewer arrivals.

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. 

SMM data showed that inventories of pure nickel in the Shanghai bonded areas declined 700 mt in the week ended April 3 to 18,600 mt, with stocks of cathode shrinking 600 mt to 16,700 mt.

The amounts of cargoes flowing in and out of warehouses at ports fell significantly from last week as traders mostly depleted their inventories and slowed down purchases on falling export orders.

Social inventories of stainless steel in China showed signed of declines at end-March, after the stocks hit the highest level on record last month. However, downstream demand has yet to recover sufficiently to support a sustained slide in the inventories, which may threaten lingering inventory pressure in April that will keep stainless steel prices under pressure.