By Rachel Wang
Mysteel Survey: Scheduled Winter Stockpiling in Shandong Down Nearly 20% On-Year
Local transportation and downstream demand in Shandong experienced a recovery in the fourth quarter thanks to the recently eased Covid restrictions, bolstering the market sentiments during this time. Mysteel has conducted a survey on several local traders and their expectations for winter stockpiling this year with the major findings as followed:
The scheduled winter stockpiling activities continues to weaken
Among those surveyed traders, 90% act as the agents for local steel mills, while only 10% for extra-provincial resources. Particularly, the scheduled winter stockpiling volume for local brands in Shandong this year is some 820Kt, only 80% of last year’s level; the scheduled winter stockpiling volume for extra-provincial brands this year is about 89Kt, down 47% on-year, indicating a significant downturn.
The expected price is between CNY 3600-3700/t
Among them, 50 of 51 traders anticipate their stockpiling prices within CNY 3600-3700/t with only one other trader’s expected level beyond this. Thanks to the improving market expectations during this time, the anticipated winter stockpiling prices among those traders have risen by CNY 100-200/t now compared with November.
Winter stockpiling remains cautious amid uncertainties moving forward
Mysteel has conducted a survey on the market forecast for next year with details as followed:
Less than 10% traders are optimistic about the market and will likely increase winter stockpiling activities moving forward.
20% traders will definitely undertake winter stockpiling because of the demand from downstream construction sites and etc.
More than 50% traders haven’t made a decision, which will be based on the procurement policies of steel mills in month end.
More than 20% traders will not stockpile in winter because of their pessimistic market outlook and etc.
If you are interested in the express updates, please feel free to contact Mysteel via. wangqia@mysteel.com.