Long steel social inventories in Guangzhou fell 2.31% on week

SHANGHAI, Oct 14 (SMM) – Social inventories of long steel (including wire rods and rebar) in Guangzhou decreased 2.31% or 32,100 mt in the week ended October 14 to 1.36 million mt, showed SMM data. Stocks were 66.8% higher than the same period last year.

Rebar accounted for 760,100 mt of the social inventories, down 2.9% or 22,700 mt from a week ago but up 93.6% from a year ago. Meanwhile, wire rods inventories totalled 597,600 mt, down 1.55% or 9,400 mt week on week but up 41.8% year on year.

On the supply side, there is no concentrated increase in long steel in the south shipped from the north. The production of local steel mills tends to be stable with steady performance of the supply side.

On the demand side, steel  is strong with robust shipments at mills. Guangdong Provincial Housing and Construction Department issued an Urgent Notice on Deeply Drawing Lessons from the Major Accident in October 8 in Shanwei Luhe to Carry out Special Investigation and Remediation of Hidden Dangers of Template Collapse on October 12. Although the impact on the construction sector is limited, but this may suppress market sentiment to some extent.

After the recent price increase, long steel prices in Guangzhou are likely to be under pressure.