SHANGHAI, Jan 29 (SMM)—China HRC stocks across social warehouses and steel makers extended gains this week, but the rise narrowed significantly compared with the previous week.
SMM data showed that HRC stocks rose 52,300 mt or 1.53% from the previous week, and 35.24% from a year earlier, to 3.47 million mt in the week ended January 28.
Inventories across social warehouses shrank 10,000 mt or 0.46% week on week to 2.17 million mt. This was 26.41% higher than the same period last year. Cargoes piled up at northern ports, and large amounts of HRC shipped to the east and south markets are still stranded on the way, and these led to the decline in socail inventories this week.
Stocks at Chinese steel makers came in at 1.3 million mt, up 62,300 mt or 5.03% week on week and 53.07% year on year. Most of the HRC producers kept stable production this week, while only several steel makers in Hebei reduced output slightly due to shortages of raw materials.
HRC inventories are expected to build up during the Chinese New Year holiday as the large amounts of cargoes on the way arrive in the east and south markets.
