The inventory of rebar, wire rod, and hot-rolled coil in China is steadily decreasing.

According to a survey by Chinese steel media Mysteel, from May 17 to 23, the inventory of five major carbon steel products decreased by 2.2% from the previous week to 4.69 million tons. This marks the second consecutive week of decline, though the decrease rate slowed compared to the previous week's 3.2%. During the survey period, the inventory of rebar, wire rod, and hot-rolled coil consistently decreased, while the inventory of the other two steel products increased.

During the same period, production increased. The total production of the five items reached 8.96 million tons, the highest weekly production in five months.

Mysteel stated that the strength in futures prices led to a slight recovery in the prices of steel products in China. It analyzed that immediate inventory replenishment by some end-users improved the actual trading situation. As a result, as of May 22, the price of 20mm diameter HRB400E rebar, including value-added tax, rose to 3,899 yuan per ton. On the same day, the October delivery rebar futures price traded on the Shanghai Futures Exchange (SHFE) rose by 183 yuan from the previous week to 3,800 yuan per ton.

Meanwhile, Mysteel's survey showed that the daily trading volume of construction steel composed of rebar, wire rod, and coil averaged 151,449 tons per day from May 16 to 22 among 237 Chinese trading companies.