Steel stocks fell for the fifth consecutive week and total inventory hit a record low for the year

According to the "My Steel Net" inventory survey statistics, as of November 11th, the five major steel products (rebar, wire rod, hot rolled coil, cold rolled coil and medium plate) in 26 major markets in China It was 134.428 million tons, a decrease of 446,000 tons from the previous week. It fell for the fifth consecutive week after the National Day. At the same time, total inventory has also hit a record low since 2011. Compared with the same period of last year (November 12, 2010), total inventory was 179,000 tons.

In terms of sub-categories, the large-scale social inventories fell again across the board this Friday, with rebar and hot-rolled coils declining the most, down by 249,000 tons and 102,000 tons respectively from last week; wire, cold-rolled coils, and plate Reduce 79,000 tons, 1.2 and 0.5 million tons. Last week, there was a slight increase in cold-rolled coils and plates.

In addition, it is worth noting that the total stock of rebar and wire rods was 6.504 million tons, which was still 536,000 tons higher than the same period of last year, and the year-on-year increase was rising for the second consecutive week, indicating that the destocking effect of construction steel was not as good as last year.

After domestic steel prices experienced a sharp drop from mid-September to the end of October, on the one hand traders’ enthusiasm for ordering decreased significantly, and inventory control was the main risk in operation. At present, there are even some resource shortages in many domestic markets. The market feedback steel mill stocks may increase; on the other hand, steel mills' inspection and production reduction efforts have indeed increased. According to media reports, the average daily output of crude steel in October announced by the National Bureau of Statistics has dropped to an annual low of 1.764 million tons. With the onset of winter in the later period, construction in most areas of the country is limited, terminal demand may be further weakened, and destocking pressure will increase.