SHANGHAI, Jul 22 (SMM) – Social inventories of long steel (including wire rods and rebar) in Guangzhou decreased 5.86%, or 86,100 mt, in the week ended July 22 to 1.38 million mt, showed SMM data.

That marked the fourth consecutive week of decline and accelerated from a drop of 500 mt in the previous week, as downstream demand continued to recover amid improved market sentiment as the rainy season ends. 

On a yearly basis, long steel inventories in Guangzhou were 31.44% higher as of July 22. 

Rebar accounted for 914,600 mt of the stocks, down 4.84% from a week ago but up 50.13% from a year ago.

The rest 468,200 mt was wire rods, down 7.8% week on week but up 5.7% year on year.

Despite falling inventories, rebar prices in Guangzhou may see their upward momentum losing steam in the near term as the stocks remained significantly higher year on year and some EAF steel mills have increased operations after their in-plant inventory pressure eased.