[SMM Survey] HRC arrivals fall sharply across China's major markets this week

SMM Steel, August 4 – According to SMM statistics, estimated total shipments of mainstream market resources this week were 181,300 mt, down 25.05% WoW from the previous week's shipment level. By market:

Table 1: Mainstream Market Arrivals Comparison

Source: SMM Steel

Shanghai market: Shipments of hot-rolled coils in the Shanghai market edged down WoW this week. Specifically, north China resources continued to maintain high shipment levels; shipments from steel mills in south China decreased slightly WoW. Looking ahead, the price difference between north and south China remains high, making north China resources still cost-effective, while south China shipments may see some increase later. In the short term, mainstream arrivals in Shanghai will stay high.

Chart-1: Shanghai Market Arrivals

Source: SMM Steel

Lecong market: Shipments to Lecong were nearly halved this week. Specifically, north China resources continued to see few arrivals at the port, and two major mainstream resources decreased significantly, with DDH adjusting its shipment preference. Looking ahead, mainstream resources have recently approached the bottom, and with the start of a new month, shipments may increase later. In the short term, arrivals in south China are likely to bottom out.

Chart-2: Lecong Market Arrivals

Source: SMM Steel

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