The production of rebar rebounded slightly, and the inventory began to rise. The total rebar inventory increased 2.1% on the week, with social inventory up upward 3.1%, and inventory at steel mills down 1.6%. Most traders and construction projects stopped operation for the National Day holiday, which led to the sinigicant drop in shipments. On the supply side, the production in October is expected to rise slightly as some steel mills will resume production in early and mid-October. Most construction sites indicated that they would speed up the construction progress entering October, and the inventory is expected to decline at a faster pace.
The inventory of HRC rose, and the demand has been declining. The total HRC inventory increased 3.2% on the week, with social inventory up 1.3%, and steel mill inventory up 9.4%. The output of steel mills were basically flat last week, and the inventory rose slightly due to light transactions. Looking forward, the demand and supply side will stay weak under the influence of the power rationing in the mid and long term.
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