[SMM HRC Weekly Balance] Post-Holiday Demand Gradually Started, This Week's HRC Social Inventory Increased by 9%

• SMM HRC Weekly Balance

• February Steel Mill Production Schedule Increased MoM  Short-Term Production Fluctuates at High Levels

In February, domestic trade orders for steel mills performed well, with high production enthusiasm. This week, HRC production slightly increased MoM.

• This Week's HRC Social Inventory Rose 9% MoM

This week, SMM statistics showed that the HRC social inventory across 86 warehouses nationwide (large sample) reached 4.452 million mt, up 364,700 mt or 8.92% MoM, and down 14.01% YoY based on the lunar calendar. In the second week after the Chinese New Year holiday, national social inventory continued to accumulate. By region, inventory buildup was more significant in east China, south China, and north China markets. 【SMM Steel】

*Note: Due to the impact of the Chinese New Year holiday, inventory data for some regional warehouses were revised last week. We apologize for any inconvenience caused!

• This Week's HRC In-Plant Inventory Slightly Increased MoM

Recently, steel mills have shown high production enthusiasm. Coupled with reduced transportation capacity in some regions due to the holiday, HRC steel mill inventory increased MoM.

Note:

1. SMM weekly HRC production/apparent demand/inventory data are based on a sample of 40 steel mills and 86 mainstream 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 the data on Thursday mornings.