Ø Weekly HRC Balance
Ø Accumulation of Total HRC Inventory Before and After Chinese New Year (Small Sample)
This week, the total HRC inventory was 4.0775 million mt, down 15,000 mt WoW, a 0.37% decline WoW, an 8.65% decline YoY, and a 0.58% increase compared to the same period in the lunar calendar.
Ø HRC Production Continues to Decline WoW
This week, due to maintenance at some steel mills in North and South China, HRC production continued to decrease.
Ø Social Inventory of HRC Continues to Decrease
This week, the SMM statistics for the social inventory of HRC in 86 warehouses nationwide (large sample) was 4.4252 million mt, down 76,400 mt WoW, a 1.7% decline WoW, and a 1.81% increase compared to the same period in the lunar calendar. This week, the national social inventory continued to decrease. By region, the declines in South and North China were higher than those in East, Central, and North-east China. In detail:
l [Shanghai] Shanghai Inventory Increased Slightly
This week, the HRC inventory in Shanghai was 380,100 mt, up 5,500 mt WoW, a 1.47% increase; it declined 9.24% YoY and increased 4.22% compared to the same period in the lunar calendar.
l [Lecong] Lecong Inventory Continued to Decrease
This week, the HRC inventory in Lecong was 98.73 mt, down 39,000 mt WoW, a 3.80% decline; it decreased 8,600 mt compared to the same period in the lunar calendar, a 0.86% decline.
l [Zhangjiagang] Zhangjiagang Inventory Decline Narrowed
This week, the HRC inventory in Zhangjiagang was 428,000 mt, down 6,000 mt WoW, a 1.38% decline; it declined 4.89% YoY and increased 10.59% compared to the same period in the lunar calendar.
Some steel mills in South and North China are still under maintenance, and HRC supply continues to decrease. During this period, futures first rose and then fell, and end-user purchases were cautious. However, on the basis of supply reduction, social inventory still maintained a downward trend. Looking ahead, as mill maintenance has not yet fully ended, supply pressure is relatively small in the short term, and end-use demand remains resilient. It is expected that the national social inventory will continue to decrease in the short term.
