Off-season demand "drags down" total construction steel inventory, which may shift from decline to increase next week

This week, the total inventory of construction steel continued to decline. The total rebar inventory stood at 5.1666 million mt, with a WoW decline of 0.36%. The total wire rod inventory was 1.0759 million mt, showing a WoW increase of 1.44%. On the supply side, blast furnace steel mills currently have moderate profits. According to the SMM survey, there were no new blast furnace maintenance this week, while three blast furnaces resumed production, leading to an increase in pig iron supply. More blast furnaces are expected to resume production in the future, with pig iron production continuing to rise. However, EAF steel mills are facing poor profitability. This week, one electric furnace mill halted production for maintenance, and three electric furnace mills shortened their operating hours. Nevertheless, some electric furnace mills in South China, which had previously cut production, extended their operating hours this week to ensure order fulfillment. On the demand side, the weak off-season demand persisted, with high temperatures and rainy weather constraining downstream construction activities. Terminal purchases were mainly driven by immediate needs, with low speculation willingness. Overall, the fundamental situation this week showed relatively small changes compared to the previous period. The total inventory of construction steel continued to decline, but the rate of decline narrowed.

This week, the total rebar inventory was 5.1666 million mt, with a WoW decrease of 18,700 mt, a decline of 0.36% (previous value: -1.43%). Compared to the same period of the previous lunar year, it decreased by 217.11, a decline of 29.59% (previous value: -29.21%).

This week, the in-plant rebar inventory was 1.8808 million mt, with a WoW increase of 35,400 mt, an increase of 1.92% (previous value: -0.80%). Compared to the same period last year, it decreased by 130,600 mt, a decline of 6.49% (previous value: -10.74%). Currently, blast furnace steel mills have moderate profits, maintaining a high level of pig iron supply. The supply level has increased, but due to the off-season, direct steel supply from mills has declined. This week, the inventory of construction steel mills shifted from decline to increase.

This week, the social rebar inventory was 3.2858 million mt, with a WoW decrease of 54,100 mt, a decline of 1.62% (previous value: -1.77%). Compared to the same period last year, it decreased by 2.0405 million mt, a YoY decline of 38.31% (previous value: -36.47%). Under high temperatures and rainy weather, downstream demand remained weak, with spot prices in the doldrums. Traders maintained a cautious attitude towards the market outlook, mostly adopting a low-inventory strategy. This week, the social inventory of construction steel continued to decline. The hot and rainy weather persists, and the construction steel market has entered the off-season, with overall weak demand and reduced support for prices. However, steel mill profits are currently moderate, and overall production enthusiasm remains high, with steel production fluctuating at highs. Overall, the supply of building materials has increased while demand has decreased, making it more difficult to continue reducing the total inventory of building materials. It is expected that the total inventory of building materials may shift from a decrease to an increase next week.