[SMM HRC Weekly Balance] Inventory Buildup Begins During Chinese New Year! This Week's HRC Production Continues to Rise

SMM HRC Weekly Balance

• This Week's HRC Production Continued to Increase MoM

This week, steel mills maintained stable production enthusiasm, and HRC production increased slightly.

• This Week's HRC Social Inventory Began Chinese New Year Inventory Buildup

According to SMM statistics, the HRC social inventory across 86 warehouses nationwide (large sample) reached 3.0949 million mt this week, up 175,400 mt (+6.01% MoM) and down 25.38% YoY (lunar calendar).

This week, the nationwide social inventory buildup accelerated. By region, except for slight inventory declines in central and north-east China, the inventory buildup in south, east, and north China significantly accelerated.

• This Week's HRC In-Plant Inventory Declined MoM

As the Chinese New Year approaches, some steel mills accelerated their shipment pace, leading to a MoM decline in in-plant inventory this week.

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.