[SMM HRC Arrivals] Mainstream Market Arrivals Continued to Increase WoW This Week

SMM Steel, May 12: According to SMM statistics, estimated total shipments to mainstream markets this week were 224,300 mt, up 21.11% WoW.

By market:

Table-1: Mainstream Market Arrivals Comparison

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Source: SMM Steel

Shanghai market: HRC shipments to the Shanghai market saw a slight increase this week. Specifically, shipments from mainstream steel mills in South China remained at low levels, while shipments from North China steel mills increased narrowly. In the short term, as mainstream steel mills in South China have been adjusting their shipment pace recently, shipments to the Shanghai market are unlikely to see significant increases in the short term.

Chart-1: Shanghai Market Arrivals

Source: SMM Steel

Lecong market: Shipments destined for Lecong saw a narrow increase WoW this week. Specifically, North China resources remained relatively stable WoW, while arrivals of local mainstream resources increased WoW. On one hand, prices in South China were previously higher, and steel mills tended to ship to this region; on the other hand, another mainstream resource saw more stable production recently compared to the prior period, leading to increased shipments. Going forward, some steel mills still have relatively high volumes of in-transit resources, and the region may continue to be a favoured shipping destination for steel mills. Arrivals in Lecong are expected to remain relatively stable in the short term.

Chart-2: Lecong Market Arrivals

Source: SMM Steel

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