China's steel social inventory continues to decline, reaching lowest level in 5 years
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Update time : 2024-12-10 17:36:55
As of December 4, steel social inventories in 29 key Chinese cities have fallen to 7.116 million tons, the lowest in five years, down 2.57% from the previous week. This reflected changes in the steel market, influenced by seasonal demand shifts.
Steel mills, particularly in the construction materials sector, have significantly reduced production, with many shutting down for maintenance since mid-November.
The blast furnace operating rate of major steelmakers decreased to 75.7%, marking a 0.3% drop from the previous week and a 2.2% decline year-on-year. Despite reduced production, demand for construction materials remains resilient, with transaction volumes in early December showing slight growth.
However, steel traders have reduced their inventories by 70%, driven by falling steel prices and market uncertainties. The outlook for the steel market in December is cautiously optimistic, with the potential for modest price increases, pending policy changes from upcoming major meetings.
