SHANGHAI, Dec 2 (SMM) – The inventories of rebar across Chinese steelmakers and social warehouses stood at 6.15 million mt as of December 2, down 687,000 mt or 10.0% from a week earlier, compared to a drop of 5.9% in the previous week. Stocks are down 252,400 mt or 3.9% from a year earlier, compared to a gain of 5.3% in the previous week.
The rebar inventories at Chinese steelmakers reduced 407,900 mt or 15.4% from a week earlier to 2.25 million mt. And stocks are 303,600 mt or 11.9% lower than the same period last year, compared with an 11.4% increase in the previous week.
Inventories at social warehouses declined 279,100 mt or 6.67% on the week and stood at 3.91 million mt, compared to a drop of 6.35% in the prior week, but up 51,200 mt or +1.3% from a year ago, compared to a growth of 1.8% in the prior week.
The prices of rebar futures and spot cargoes moved rangebound this week. On the supply side, the overhaul of some steel companies in east China ended, significantly growing the output of rebar. However, the strict environmental protection and production restrictions in the north and strict control of some steel mills in the south due to the energy consumption issues limited the output growth to 2%. The demand was brisk as east China and some regions in north China worked against the clock. The apparent consumption of rebar increased 9.8% this week.