SHANGHAI, May 7 (SMM) – Affected by the holiday effect this week, the apparent demand of the rebar fell 15.56% year on year, and in-plant stocks and social stocks posted slower decrease. The market expectation to the crude steel reduction policy further heated up after the holiday due to positive signals from the supply side at the Politburo meeting during Labor Day holiday. The market's bullish sentiment is high, and the futures and spots are now resonating upward. Market speculation is high and traders concentrate on restocking, while the downstream restocking is tepid, and transactions are following up in general.
Inventories of rebar across Chinese steelmakers and social warehouses stood at 11.88 million mt as of May 6, down 1.8% from a week ago. Stocks are down 8.8% from a year earlier.
Inventories at Chinese steelmakers fell 119,300 mt on the week and stood at 3.41 million mt. Stocks are down 3.4% from a week ago and down 10.8% from a year earlier.
Inventories at social warehouses fell 116,000 mt on the week and stood at 8.48 million mt, down 1.3% from a week ago and 8% lower from a year ago. The week-on-week decrease narrowed 6 percentage points from the previous week. The year-on-year decrease fell 4 percentage points from the previous week.
