Crude steel output across major mills in China averaged 2.05 million mt per day in the first 10 days of May.

While production expands, inventory pressure at steel plants continued to reduce on the back of growing consumption, and this may provide upward momentum in near-term steel prices. 

Inventories of hot-rolled coils of steel sheets used to produce home appliances and cars in China fell for an eighth straight week this week, as demand remained robust. SMM data showed that HRC stocks across social warehouses and steelmakers decreased 2.31% in the week ended May 7 to 4.45 million mt. That was smaller than a 4.6% fall in the previous week due to the Labour Day holiday and improved arrivals.

Prices of construction steel rebar will likely stay rangebound in the weeks ahead, underpinned by strong demand from stepped-up operations at construction sites while supply pressure continues to mount. 

SMM data showed that HRC stocks across social warehouses and steelmakers decreased 4.56% in the week ended April 16 to 5.02 million mt, marking a fifth straight week of decline and larger than a 3.59% fall in the previous week.

China’s imports of iron ore and concentrate dipped 0.6% in March from a year earlier to 85.91 million mt, according to data from the General Administration of Customs released on Tuesday.

A total of 86 vessels carrying 13.43 million mt of iron ore arrived at major Chinese ports during March 29 to April 4, SMM estimates.

The US will continue to levy countervailing duties on carbon and certain alloy steel wire rod from China, according to the final determination on the first five-year sunset review on the CVD order by the Department of Commerce released on March 30.

The combined iron ore shipments from Australia and Brazil remained in a steady upward trend and this is likely to lift the arrivals at Chinese ports in the near term

JFE, Japan’s second biggest steelmaker, said on Friday that it will close a blast furnace and other facilities at the East Japan Works (Keihin) to optimise its domestic operations. Those facilities are expected to be shut down by FY2023 (ending March 2024), bringing the company’s operating blast furnaces in Japan to seven and reducing its crude steel capacity by around 4 million mt or 13%.