Market Demand Slightly Improves; Construction Materials Social Inventory Shifts from Increase to Decline

Published: Aug 20, 2026 14:00

Save

Construction Materials Social Inventory: According to SMM survey, the total construction materials social inventory shifted from increase to decline this period. As of August 20, 2026, SMM construction materials social inventory stood at 5.5491 million mt, destocking by 206,600 mt WoW, down 3.59%. During the survey period, futures drifted higher, and market trading sentiment improved slightly compared to the earlier period, driving the overall inventory destocking. In addition, in some regions, high water levels in waterways hindered navigation, leaving most resources still stranded in transit, causing a significant drop in actual arrivals. The combined impact led to a faster pace of social inventory destocking this period. Going forward, attention should be paid to inventory pressure from concentrated arrivals after navigation resumes.
Regional Social Inventory: Currently, inventory performance across regions continued to diverge. East China stood out in destocking, mainly due to the phased shipping suspensions in Huzhou, Jiaxing and other places, which caused a sharp drop in construction materials arrivals in Hangzhou, while demand remained largely at the prior level, resulting in a notable WoW destocking. In the Northwest region, due to continuous resource outflows from local steel mills, in-province deployment decreased, and inventory continued to destock. In Southwest China, Central China, and South China, sentiment recovered intermittently driven by futures, and downstream clients' willingness to purchase strengthened slightly, edging inventory down.

Data Source Statement: Except for publicly available information, all other data are processed by SMM based on publicly available information, market communication, and relying on SMM's internal database model. They are for reference only and do not constitute decision-making recommendations.

For any inquiries or for more information, please contact: lemonzhao@smm.cn

For more information on how to access our research reports, please contact:service.en@smm.cn

Related News

26 mins ago

HRC Inventory for the Third Week of August 2026

This week's HRC social inventory was 2.8361 million mt, up 34,700 mt from the previous week, up 1.24% WoW, up 31.27% YoY, and up 40.81% on a lunar YoY basis. This week's HRC mill inventory was 1.1166 million mt, up 18,100 mt from the previous week, up 1.65 WoW, up 11.97% YoY, and up 12.46% on a lunar YoY basis. This week's total HRC inventory was 3.9527 million mt, up 52,900 mt from the previous week, up 1.36% WoW, up 25.18% YoY, and up 31.45% on a lunar YoY basis.

26 mins ago

35 mins ago

[SMM Steel] Lloyds Metals Set to Enter TMT Bar Segment

[India] Lloyds Metals & Energy is preparing to enter the TMT bar segment with the first products expected to be available in the market in over six months. The company is looking to expand its presence across central and southern India, supported by continued infrastructure-related steel demand. Lloyds plans to use iron ore from its Surjagarh mines in Gadchiroli with pellet production at its Konseri facility and downstream TMT manufacturing at Ghugus, Chandrapur. The company is also expanding its Ghugus plant and developing an integrated steel complex at Konseri. The company is developing a slurry pipeline to transport iron ore to the Ghugus plant, which is expected to reduce transportation costs from around USD10.46/tonne (INR1,000/tonne) to USD8.37/tonne (INR800/tonne).

35 mins ago

1 hour ago

[SMM Analysis] India’s Steel Expansion Is Deepening Its Coking-Coal Exposure

India’s expanding steel sector rests on an uneven raw-material base: abundant domestic iron ore and greater use of locally sourced scrap contrast with a deepening dependence on imported coking coal. Imports surged 15.2% to 66.33 Mt in FY2025-26, and official projections indicate they could meet nearly 86% of a 161 Mt requirement by FY2030, leaving mills exposed to volatile seaborne prices despite improving domestic washery efficiency.

1 hour ago