China’s steel inventories are rebuilt

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From Macquarie:

According to the latest CISA 10-day statistics, in the first 10 days of September its member mills’ daily crude steel production climbed by 4.65% from late August to 1.76mtpd, which is the highest production rate since June this year. Steel inventory among those major mills increased by 11% since the end of August to 13.75mt and is 2.9% higher than the same time last month. Traders’ steel inventory has risen for 9 weeks since mid-July based on Mysteel data, and the current inventory level is only 4% lower than the same period last year versus 30% in the middle of July. The growth in mill production rates and steel inventory suggests an oversupply risk in China’s domestic steel market even with a seasonal pickup in steel demand.

Oh dear. Here’s Goldman from earlier this year:

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About the author
David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal. He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.