Steel inventories held by traders in the eastern and southern regions of China as of June 10 are higher than levels during the same period of 2019, the sources said.
Due to a nationwide, pandemic-led lockdown in early 2020, China's steel inventories were unusually high in the first half of 2020, so 2019 statistics present a more meaningful comparison.
On June 10, rebar inventories in eastern Hangzhou were 96% higher than in the same period of 2019, local traders said. Inventories on June 10 dropped about 1% week on week, decelerating from a 3% decline the previous week, indicating demand slowed because of the rainy season, some sources said.
On the same day, long steel inventories, comprising mainly rebar and wire rod, in southern Guangzhou, were almost at the same level as early June 2019.
In a bid to contain local COVID-19 infections, local transportation was slightly affected, which led to a delayed arrival of new materials to warehouses, some sources said. They expected inventories to increase in the following weeks partly due to seasonal factors, and partly as transportation activities gradually return to normal.
