According to the China Iron and Steel Association, as of December 28 this year, inventory of the main finished steel products (plate, hot rolled coil, cold rolled coil, rebar and wire rod) in 26 major steel markets in China totaled 11.88 million tonne, up 107,000 tonne compared to the previous week following a week on week increase of 48,000 tonne in the previous week. Meanwhile, on the same date, finished steel inventory in China was down 1.021 million tonne year on year.
In particular, inventory of rebar indicated an increase of 101,000 tonne while hot rolled coil inventory in China was down 5,000 tonne, both compared to the previous week. As of the same date, domestic inventories of wire rod, cold rolled coil and plate were respectively up 4,000 tonne, 2,000 tonne and 5,000 tonne on week on week basis.
The rapid increase in iron ore prices in December limited mills’ profit margins and this had a negative impact on their production activities. Meanwhile, shortages of funds at the end of the year also inhibited the flow of finished steel.
Source:
http://www.steelguru.com/chinese_news/Chinese_finished_steel_inventory_increases_further/297034.html
