Long steel social inventories in Guangzhou surged 26.47% on week

SHANGHAI, Feb 25 (SMM) – Social inventories of long steel (including wire rods and rebar) in Guangzhou expanded 26.47%, or 464,200 mt, in the week ended February 24 to 2.22 million mt, showed SMM data. The stocks were 7.9% higher than the same period last year.

Rebar accounted for 1.4 million mt, up 24.02%, or 271,500 mt from a week ago, and 6.18% from a year ago.

The rest 815,900 mt was wire rods, up 30.92% week on week and 10.99% year on year.

Rising arrivals of cargoes and sluggish end-user demand led to the sharp rise in long steel social inventories. But steel makers’ intention of raising prices and improving demand will support prices in the short term.