After the National Day Holidays, China's steel inventories have increased significantly. Accordingly the stockpiles for rebar, wire rod, HR, CR and plate in Chinese 25 main cities have reached 15.19 million t, rising by 0.73 million t or 5% as compared to the level before holidays.
It is reported that the inventories in the same period of 2009 and 2010 had ramped up by 1% and 4.9% respectively. Thus Chinese steel inventories have increased quickly this year.
In detail, the inventories for rebar and wire rod have surged up by 5.6% and 12% while the stocks for both HR and plate are up by 4%. At the same time, the stockpiles for CRC are up only 1.7%.
Experts said that the rising inventories may pressurize constructive steel price to go down. Thus a downward price trend will emerge in the short run.