Long steel inventories in Guangzhou slowed decline as supply recovered

SHANGHAI, Jul 29 (SMM) – Social inventories of long steel (including wire rods and rebar) in Guangzhou decreased 1.03%, or 14,300 mt, in the week ended July 29 to 1.37 million mt, showed SMM data.

That marked the fifth consecutive week of decline, driven by the release of pent-up demand after the rainy season. However, the slide slowed down from a drop of 5.86%, or 86,100 mt, in the previous week, as production from EAF steel mills rebounded and an escalation in US-China relations weighed on market sentiment and depressed speculative demand. 

A rise in end-users’ consumption improved shipments from steel mills and prompted them to step up operations. An SMM survey showed that as of July 28, the operating rates across EAF steel plants in south China rose 5 percentage points from a week ago to an average 83%. 

On a yearly basis, long steel inventories in Guangzhou were 39.63% higher as of July 29. 

Rebar accounted for 891,100 mt of the stocks, down 2.57% from a week ago but up 55.98% from a year ago.

The rest 477,400 mt was wire rods, up 1.96% week on week and up 16.8% year on year.