Decline of social stocks of five key steel products at 20 major cities in China gathered pace during early-May (May 1-10) compared with ten days ago, showed the data from the China Iron and Steel Association (CISA).
Total stocks came in at 14.98 million tonnes on May 10, dropping 7.8% from ten days ago. This was a faster decline compared with 5.4% drop and 4.8% fall on April 30 and April 20, respectively, data showed.
The volume, however, still surged 119.7% from the December's figure of 6.82 million tonnes.
Rebar and wire rod presented the most decrease during the session, followed were wire rod, and medium-thick plate and hot-rolled coil. Growth of hot-rolled coil inventories turned positive to negative.
Total rebar stocks fell 8.3% from ten days ago to 8.91 million tonnes by April 20, with the decline accelerating from 6.4% fall in the previous session and as the sharpest drop since rebar stocks topped out from mid-March.
Yet the rebar inventories were still 175% higher than December's reading, according to the CISA.
Stocks of wire rod were down 8.3% from late-April, which compares to 5.9% decrease in the preceding session. Total wire rod stocks stood at 2.88 million tonnes, 179.3% higher than the December-level.
Medium-thick plate and hot-rolled coil also posted reduction of 7% and 6.5% from the April 30 to 850,000 tonnes and 2.23 million tonnes respectively by early-May.
Inventories of cold-rolled coil fell 2.3% to 1.46 million, data showed.
Seven major geographic regions in China all posted decreases of steel product stocks during early-May.
Specifically, the top consumption area of southern China saw 6.24% reduction of stocks, at 4.06 milion tonnes by May 10, compared with ten days ago.
Stocks at eastern and southwestern China slid 7.86% and 12.54% from the preceding session to 3.75 million and 2.79 million tonnes on the same day, CISA data showed.
Central and northern China held 1.77 million and 1.14 million tonnes of stocks in the same period, down 5.35% and 10.94% compared with the late-April levels.
The CISA has adjusted the statistical frequency of social steel product inventories from monthly to 10-day basis since February, to better track the dynamics of stocks during the epidemic period.
(Writing by Emma Yang Editing by Jessie Jia)
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