Rebar stocks built up, but may shrink in March with arrival of peak season

Rebar inventory in China totalled 10.9795 million mt last week, up 2.7132 million mt from pre-holiday level and 3.93% YoY. Looking forward, BF steel mills will carry out new maintenance, while EF steel mills may intensively resume production starting this week. Downstream construction sectors will be not fully resume work. Under this circumstance, rebar stocks will still build up in a short run, but may shrink in a peak season of March.