China’s Steel Stockpiles Swell as Covid Crimps Demand and Curtails Deliveries

China’s steel inventories hit a two-year peak this month as pandemic controls curbed demand and disrupted transportation in major hubs like Shanghai and elsewhere in the Yangtze River Delta.

As of April 10, China’s major steelmakers held 18.5 million tons of the metal, representing a jump of 43% from the same period in January and 19% year-on-year, according to the China Iron and Steel Association (CISA). The Covid-19 outbreaks have dragged the demand for steel to a “historic low,” Huatai Futures Co. Ltd. wrote in a Thursday research note.