Data: SHFE, DCE market movement (May 19)

As of May 19, the operating rate of 50 major construction material-producing electric furnace steel mills nationwide was 40.2%, down 1.7% WoW; capacity utilization rate was 42.3%, down 0.63% WoW; daily average production of construction materials was 94,300 mt, down 1,400 mt WoW.

The most-traded HRC contract declined first and then rebounded today, closing at 3,428 at the end of the session, down 0.32% intraday. Spot HRC prices mostly fell 10-20 yuan/mt today, with some markets remaining stable. In terms of supply, the impact from maintenance on hot-rolled production was 137,500 mt this week, down 98,500 mt WoW, and the impact from maintenance next week will be 185,500 mt, up 48,000 mt WoW, with overall pressure being neutral. Demand side, end-users mainly purchased at low prices. As futures rose at the end of the session, market transactions improved slightly, and there was also low-price shipments in the spot-futures price spread. Cost side, after macro front disturbances diminished, short-term cost support weakened somewhat. Looking ahead, the supply-dema....

This week, hot-rolled coil inventory at Zhangjiagang was 298,000 mt, down 10,000 mt WoW, a decline of 3.25%; the solar calendar YoY decline was 14.61%, and the lunar calendar YoY decline was 21.58%.