Construction steel futures in China rose 2 percent to a 12-week high on Friday, their best week since early December, as demand rebounded ahead of a week-long national holiday.
Steel product inventories of Chinese traders as of January 25 rose 672,400 tonnes to 9.91 million tonnes, while rebar inventories rose 11.9 percent and wire rod inventories rose 13.8 percent, according to data from consulting company Mysteel.
Steel sellers in China typically restock their stocks ahead of the Lunar New Year, which starts this year on February 4th, and sell them off when downline users, especially construction sites, resume activity in the spring.
This year, traders have been reluctant to build up their stocks in recent weeks due to economic uncertainty, but the latest increase in stocks indicates more confidence in demand after hiatuses in the downstream sectors.
"The rate of growth in restocking is approaching that of the same period last year ... But demand will continue to decline as this season approaches," said analysts at Huatai Futures.
Rebar hit 12-week high on Shanghai Stock Exchange
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Azovpromstal® 26 January 1992 г. 14:14 |
