China traders’ steel stocks reverse up on slowing demand
Date: 2020-07-28
China traders’ steel stocks reverse up on slowing demand
Major finished steel stocks at the Chinese traders ended its 14 weeks of continuing declines since late March of June 19-24, though the recovery was merely 61,400 tonnes or merely 0.3% on the week, mainly as the domestic steel demand had shown signs of slowing with the heavy rainfalls having hit South and East China, while steel mills had yet trimmed the output promptly.
The stocks of rebar, wire rod, hot-rolled coil, cold-rolled coil, and medium plate among steel traders in 132 Chinese cities added up to 21.6 million tonnes as of June 24, the last working day before China’s Dragon Boat Festival over June 25-26th.
Among the five major steel products, stocks of rebar rose the most by 110,800 tonnes or 1% on the week to 11.1 million tonnes, also the dominant proportion of the five, as demand for rebar, a key steel product in the construction sites had been dampened by the non-stop heavy rains in East and Southwest China, according to market sources.
“Our weekly orders have been almost halved from the highest of 1.2 million tonnes in early June to less than 650,000 tonnes nowadays,” an official from a major steel mill in East China, admitting that the bookings for construction rebar declined the most.
“Now the (weak) season has arrived, it is the rule of nature, which is final (that we can’t fight against),” he commented.
Post time: Jul-28-2020
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