Other Friday news: Blast furnace capacity utilisation: This...

Other Friday news:

Blast furnace capacity utilisation:

This week:

The blast furnace capacity utilization rate among the 247 blast furnace steelmakers across China under Mysteel’s weekly survey reversed down 0.24 percentage point on week to 79.41% as of January 9, with another round of restriction on steel mills in North and East China over January 2-7, according to Mysteel’s latest weekly survey released on January 10.

Same week last year:

3% points lower. Capacity utilisation at 76.4%.

https://www.mysteel.net/article/5004231/WEEKLY--China-blast-furnace-capacity-recovers--just.html


Rebar stocks:

Overall inventories of rebar, including stocks across steelmakers and social warehouses, increased 11.3% and posted 6.24 million mt as of January 9, after an increase of 8.7% in the prior week.

On a yearly basis, overall inventories were 6.6% higher as of January 9, following after a buildup of 2.2% last week.

(CNY 1.5 weeks earlier this year so inventory being higher than this time last year should be expected especially during restocking period)


What I find interesting is that port stocks have declined but so have IO drawdowns at ports. It would indicate arrivals are receding.
However, arrivals have still some way to fall especially from Brazil over the next 1.5 months. Oz shipments have been low too in the last 2 weeks.

Having said that, drawdowns will probably start slowing shortly as we enter CNY period. I did read before as well that mills are being slightly more conservative restocking this year as CNY is earlier and the weather will still be cold post the holiday; hence downstream demand may not be as strong as last year upon conclusion of the holiday.