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CSI: Will inventories sink the ship? (March 2, 2018)

The dearth of data in February means a shorter CSI but that does not mean we cannot investigate some important features of the market. In fact, the build-up of inventory in the run up to the strong demand period after the Spring Festival holiday is often the single most important factor in determining the strength of steel markets. And this applies both in China and abroad each year. Although prices have held on since the holiday, after a drop for rebar at the start of the year, growing concern over inventories means there is little space for prices to increase.

The question now is, will real demand rescue the market or will inventories sink prices?