Overall Construction Steel Demand Maintains a Weak Stability in the Short Term

According to SMM statistics, mill stocks and social stocks of construction steel both saw some destocking in the current period. Total construction steel inventory came in at 6.5646 million tonnes, down 224,700 tonnes period-on-period, or −3.31%, indicating a slowdown in the pace of destocking.

On the supply side: According to widespread feedback from long-process mills, per-tonne steel profitability on construction steel has recovered somewhat, and mills’ willingness to produce has picked up slightly, with some producers restarting construction steel rolling lines. With margins holding up and scrap sourcing remaining manageable, most short-process mills can maintain off-peak/valley-power production levels apart from routine maintenance at a few EAF mills, leaving little fluctuation in their production pace.

On the demand side: The north-south demand divergence is becoming increasingly pronounced. In northern China, colder weather has slowed construction progress at end-user sites and reduced needs-driven procurement. In southern China, favorable weather is allowing a normal construction pace to be maintained, with demand showing strong resilience. With these two forces offsetting each other, demand in the current period remains largely in line with the previous period.

According to SMM statistics, mill stocks and social stocks of construction steel both saw some destocking in the current period. Total construction steel inventory came in at 6.5646 million tonnes, down 224,700 tonnes period-on-period, or −3.31%, indicating a slowdown in the pace of destocking. Source: SMM

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