Inventories of flat steel rose in May as increasingly depressed market conditions resulted in German stockholders accumulating the largest steel position since October 2018, according to data from German stockholders’ association BDS published Thursday.
Flat steel stocks increased 2.2% from the previous month, and 7.6% on the year to 1.55 million mt at the end of May.
Sources had consistently referred to declining demand for flat steel in May, which was further exacerbated by list price increases from European mills across sheet products in Europe.
In contrast, long steel stocks declined 2.5% month on month and 2.1% on the year to 877,272 mt at the end of May.
Sales from stocks saw mild increases in both categories, rising 1.39% month on month to 582,144 mt in long steel, while flat steel sales performed marginally better, gaining 2.8% month on month to 549,844 mt.
— Len Griffin