Stocks of steel products held by Chinese traders, an indicator of demand in the country, rose by 453,200 tonnes as of Jan. 11 to 8.83 million tonnes, data compiled by Mysteel Consultancy showed. Concerns about weak demand have led traders in China to be cautious about restocking steel ahead of the lunar new year break . Ordinarily , stocks would be replenished in order to start trading after the break . Last year ’s restocking was plagued by slower - than - expected demand , causing steel prices to fall nearly 20 % in a single month . Despite initiatives introduced by the government to boost the manufacturing sector , steel traders are reluctant to risk losing money again , while others remain wary about the Chinese economy .
Concerns about weak demand have led traders in China to be cautious about restocking steel ahead of the lunar new year break . Ordinarily , stocks would be replenished in order to start trading after the break . Last year ’s restocking was plagued by slower - than - expected demand , causing steel prices to fall nearly 20 % in a single month . Despite initiatives introduced by the government to boost the manufacturing sector , steel traders are reluctant to risk losing money again , while others remain wary about the Chinese economy .