Social stocks of rebar and wire rod are expected to remain high in June as the arrival of rainy season and high-temperature weather will weigh on construction activities, weakening their demands for steels, market watchers forecast.
In addition, the lackluster production and marketing in the industries of home appliance, automobile, machinery and shipbuilding will also dampen demands for steel plates. Although social stocks of steel products in the domestic market continued falling in May, the weekly fall was only 200,000 metric tons (tonnes), far lower than the weekly decline of 500,000 tonnes in the same period of last year, said Mysteel.com, a steel information provider in China.
According to a survey on steel stocks in 28 major cities in China, social stocks of the rebar and wire rod continued falling in the last week of May. Stocks of wire rod amounted to about 1.39 million tonnes, down 38,700 tonnes week on week, while those of rebar were about 6.27 million tonnes, down 32,300 tonnes week on week.
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