Steel stockpiles hit new high

Bearish sentiment is spreading among Chinese steel dealers, according to industry consultancy Mysteel, as the country's steel inventories reach record levels.

As of Feb 22, the stockpiles of the nation's five major steel products, including ribbed bars, wire rods and hot-rolled coils, had swollen to 20.38 million metric tons, marking a 10-week high.

According to a report by Beijing News on Tuesday, domestic steel inventories will continue to rise, reaching their yearly peak in late February or early March.

China's steel output reached 1.99 million tons during the first 10 days of February, up 16.7 percent year-on-year - the highest level since late October last year, according to data from the China Iron and Steel Association.