National steel society stocks rebounded sharply

According to a report released recently by the China Iron and Steel Association, from the beginning of the year to the beginning of March, the nation’s steel stocks have increased significantly compared to the end of the previous year. Construction steel such as threads and wire rods has nearly doubled from the end of last year, and the downward pressure on steel prices has risen significantly.

The report pointed out that since the beginning of this year, steel stocks have risen rapidly and downward pressure on steel prices has risen. By the beginning of March, the nation's 26 major steel markets and five kinds of steel social inventories increased by 8.1 million tons from the end of the previous year, an increase of 68.15%, and a year-on-year increase of 6.15%, which was the first year of inventory increase since September last year. The stocks of rebar and wire rods increased by 6.35 million tons, accounting for 78.5% of the total increase, up 98.8% from the end of the previous year.

According to statistics, in the first two months of this year, China produced a total of 12.45 million tons of crude steel, a year-on-year increase of 10.6%, and the average daily production reached 2.212.30 million tons, the highest in the same period in history. Given the limited growth in market demand, the sharp increase in steel production has further aggravated the contradiction in the oversupply of the domestic steel market.