Recent steel supply and demand in China

During the Chinese New Year holiday, due to the overhaul of steel mills, the operating rate of the rolling line dropped significantly. The total volume of the five major steel products fell for five consecutive weeks. The current steel output was 10.036,800 tons, a decrease of 92,600 tons from the previous month. The same period last year was 9,115,400 tons. Over the same period, the chain decreased by 168,700 tons. Among them, the production of rebar was 3.088 million tons, a decrease of 130,700 tons from the previous month, a decrease of 120,900 tons compared with 3.037 million tons in the same period last year. The production of hot rolled steel coils was 3.4146 million tons, a decrease of 27,600 tons from the previous month, an increase of 46,500 tons compared with 3.4112 million tons in the same period last year.

On the demand side, during the Spring Festival holiday, the spot market was closed, and downstream projects were suspended, which led to a rapid increase in steel inventories. The apparent consumption of steel reached a year-round low and will gradually rise after the holiday. The government advocates that migrant workers do not return to their hometowns and spend the New Year at the places where they work. According to the analysis of shipping data, the number of people celebrating the New Year at the working place has increased significantly, and workers can quickly get in place after the holiday, which is conducive to the rapid start of downstream engineering projects.