SHANGHAI, Dec 3 (SMM) – Social inventories of long steel (including wire rods and rebar) in Guangzhou decreased 10.5%, or 111,900 mt, in the week ended December 2 to 956,900 mt, showed SMM data. Stocks were 49.1% higher than the same period last year.

Rebar accounted for 310,300 mt of the social inventories, down 14.8% or 54,000 mt from a week ago and up 46.9% from a year ago. Meanwhile, wire rods inventories totalled 310,300 mt, down 14.8% or 54,000 mt week on week but up 46.9% year on year.

End-user demand in South China was released well amid good weather, and merchants and manufacturers gave feedback that the shipment was smooth. Although long steel social inventories in North China increased slightly, it could not match the released flow of demand, so inventories kept declining rapidly.

South China is still in the peak construction season, with rigid demand and stable supply. Steel mills are willing to stand up for the prices when the cost is high, and the price still has certain support. However, with the New Year approaching, in addition to the pressure of long steel social inventories in North China, the main tasks of the construction site and merchants have changed from trading to withdrawing funds, which also has a certain suppression effect on the spot prices, so it is expected that long steel prices will fluctuate at high in the near term.