The latest rebound in steel mill’s rebar stocks were mainly due to the decline in deliveries to construction sites and traders with the rainy season just around the corner, according to Mysteel’s survey. Besides, the downstream buyers will also need to take a pause after having been consistently taking in stocks for over two months, Mysteel Global noted.
The rainy season has already arrived in South China, and the rebar stocks at the mills in South China grew 91,800 tonnes or 8.4% on week to nearly 1.2 million tonnes as of May 27, or the highest stocks among all the major regions, according to Mysteel’s data.
In the last week of May, rebar output from the sampled mill inched up 0.6% on week to 3.94 million tonnes, which was notably slower than the 2.7% on-week growth in the prior week, probably as the producers had been consciously adjusting their pace in preparation for a low consumption season in summer, Mysteel noted during he survey.
Over May 21-27, the average rebar rolling capacity utilization rate among the 137 nudged up 0.5 percentage point on week to 86.4%, which was still at a relatively high level in Mysteel’s record.
“The rolling capacity utilization is already high, so the room for further increment has been rather limit, together with the probable dwindling demand from construction sector in rainy season, the weekly rebar output will probably be range-bound (in the coming weeks),” a Shanghai-based market source said.
China’s HRB 400 20mm dia rebar price had felt the pressure too over May 21-27, as it went down Yuan 39/tonne ($5.6/t) on week to Yuan 3,766/t including the 13% VAT, or still Yuan 427/t lower on year.
Written by Venus Wang, firstname.lastname@example.org
Edited by Hongmei Li, email@example.com
Table 1: Mysteel Rebar Production Survey by Region on May 28 (Unit: ’000 tonnes)
Table 2: Mysteel Wire Rod Production Survey by Region on May 28 (Unit: ‘000 tonnes)
Table 3: Mysteel Rebar Production Survey by Process on May 28 (Unit: ‘000 tonnes)
Table 4: Mysteel Wire Rod Production Survey by Process on May 28 (Unit: ‘000 tonnes)
Table 5: Mysteel Rebar and Wire Rod Stocks Survey by Region on May 28 (Unit: ‘000 tonnes)
Table 6: Mysteel Rebar and Wire Rod Stocks Survey by Process on May 28 (Unit: ‘000 tonnes)