Long steel social inventories in Guangzhou fell 1.41% on week

SHANGHAI, Aug 26 (SMM) – Social inventories of long steel (including wire rods and rebar) in Guangzhou decreased 1.41%, or 18,400 mt, in the week ended August 26 to 1.28 million mt, showed SMM data. Stocks were 55.2% higher than the same period last year.

Rebar accounted for 788,700 mt of the social inventories, down 2.73% from a week ago but up 73.8% from a year ago. Meanwhile, wire rods inventories totalled 495,400 my  up 0.75% week on week and 32.5% year on year. Shipments have improved amid positive demand and good weather in Guangzhou.

On the other hand, raw material prices continued to rise amid stable steel prices. EAF steels and blast furnace plants have turned to production of coils instead of rebar as it fetches more profits, and are carrying out maintenance and reducing output. The decline in output also accounted for the decrease of long steels inventories in Guangzhou.