Accumulation of Rebar Inventory Accelerated in the First Week after Chinese New Year Holidays

SHANGHAI, Mar 2 (SMM) - Rebar inventory at mills and social warehouses accumulated in the week before and after CNY holidays as demand was far weaker than supply.

According to SMM survey, as of February 1, inventory at mills increased by 63.9% compared with the pre-holiday level, and the inventory at social warehouses increased by 40.67%.

The growth rate of in-plant inventory in the first week after the CNY holiday outpaced that of social warehouses. Steel mills lacked the motivation to sell during stockpiling for winter production due to the cost factor driven by changes in the upstream and midstream industry policies, holding back their cargoes. Traders stood on the sidelines and restocked inventory modestly. On the other hand, most steel mills using blast furnaces undertook maintenance before CNY holidays when steel mills using EAFs shut down, lowering output to low levels. But some steel mills resumed production at a fast clip, and the output recovery has accelerated stock accumulation.