[SMM Analysis] Pre-holiday restocking by end-users remains moderate, Ningbo HRC inventory edges down

[SMM Analysis] Pre-holiday restocking by end-users remains moderate, Ningbo HRC inventory edges down

According to SMM survey, this week's SMM large-caliber HRC inventory in Ningbo stood at 371,000 mt (as of Sep 23), down 13,800 mt WoW.

Data Source: SMM

This week, HRC futures moved sideways, edging up WoW, while spot prices fluctuated within a narrow range of just 10-30 yuan/mt. Recently, prices in the Ningbo area have been at 3,330-3,340 yuan/mt. In terms of transactions, market trading intensity remained at a medium-to-weak level, with downstream purchasing willingness being moderate. Pre-holiday restocking demand also showed no significant release, and overall performance fell short of the same period last year. As a result, although inventory continued to destock, it remained at a slightly elevated level YoY.

Data Source: SMM

Finally, let's review SMM's weekly HRC balance data. SMM statistics show that HRC social inventory across 86 warehouses nationwide (large sample) stood at 4.6518 million mt, down 10,700 mt WoW, or -0.23% WoW, and up 25.37% YoY on a calendar-year basis. By region, except for east China, which saw destocking, all other regions experienced inventory buildup. Preliminary estimates suggest that inventory will continue its downtrend this week.

Data Source: SMM

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