[SMM HRC Weekly Balance] Social Inventory Slightly Decreased WoW This Week; Demand Resilience Remains Supported

• This Week's HRC Production Fluctuated Rangebound

This week, some steel mills in east and north China resumed production after maintenance, while others were still undergoing maintenance or were expected to start maintenance soon. Overall, HRC production fluctuated rangebound on a WoW basis.

• This Week's HRC Social Inventory Declined

This week, SMM's survey of 86 warehouses nationwide (large sample) showed HRC social inventory at 2.9777 million mt, down 40,900 mt or 1.35% WoW, and down 20.90% YoY based on the lunar calendar. Nationwide, social inventory declined this week. By region, inventory buildup accelerated in the north China market, while destocking occurred in the south, central, east, and north-east China markets.

• This Week's HRCIn-Plant Inventory Increased WoW

This week, steel mill inventory saw a slight increase on a WoW basis.

Note:

1. SMM's weekly HRC production/apparent demand/inventory data are based on a sample of 40 steel mills and 86 mainstream market warehouses nationwide.

2. As of October 31, 2024, SMM's weekly HRC production and steel mill inventory data covered 85% of the national HRC capacity.

3. SMM conducts surveys every Wednesday and releases the data on Thursday mornings.