[SMM HRC Weekly Balance] First Week After the Holiday: HRC Production Fluctuates at High Levels, Social Inventory Accumulates Significantly

• SMM Weekly HRC Balance

• HRC Production Fluctuated at High Levels Around Chinese New Year

Steel mills maintained moderate production profitability, with HRC production fluctuating at high levels in the first week after the holiday.

• Significant Inventory Buildup in HRC Social Inventory in the First Week After the Holiday

This week, SMM statistics showed HRC social inventory at 3.8517 million mt across 86 warehouses nationwide (large sample), up 756,800 mt WoW (+24.45%) and down 25.03% YoY (lunar calendar basis).

Social inventory increased across all regions in the first week after the holiday, with east China, south China, and north China markets seeing larger buildups. 【SMM Steel】

*Note: Due to the impact of the Chinese New Year holiday, slight discrepancies may exist in inventory data for some regions this week. We apologize for any inconvenience caused!

• Chinese New Year Impacted HRC In-Plant Inventory

HRC in-plant inventory increased WoW due to the Chinese New Year holiday.

Note:

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

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 data on Thursday mornings.