Long steel social inventories in Guangzhou fell moderately due to improved demand on week

SHANGHAI, Nov 11 (SMM) – Social inventories of long steel (including wire rods and rebar) in Guangzhou decreased 4.4%, or 54,700 mt, in the week ended November 11 to 1.19 million mt, showed SMM data. Stocks were 93.2% higher than the same period last year.

Rebar accounted for 749,200 mt of the social inventories, up 0.23% or 1,700 mt from a week ago and up 131.8% from a year ago. Meanwhile, wire rods inventories totalled 439,400 mt, down 11. 4% or 56,400 mt week on week but up 50.5% year on year.

2016-2020 long steel social inventories in Guangzhou

Long steel social inventories in Guangzhou keep falling steadily this week. Although the year-on-year increase of inventories is still high, the market capacity for high inventories has been gradually improved since declining from the absolute amount of 2.475 million mt at the peak. Under the current situation that the end-user demand is released well and cargoes from North China mainly shipped to East China, inventories are unlikely to pose a threat to the market. Spot prices are likely to continue to run steadily and strongly.