[SMM HRC Weekly Balance] This Week's HRC Production Fluctuated at High Levels, Social Inventory Growth Significantly Slowed

• SMM HRC Weekly Balance

• This Week's HRC Production Remained at a High Level

There were no new maintenance activities this week, and steel mill production increased slightly. From late February to early March, some steel mills in north and south China are expected to undergo maintenance, leaving limited room for short-term HRC production growth.

• This Week's HRC Social Inventory Growth Significantly Slowed

According to SMM statistics, the HRC social inventory across 86 warehouses nationwide (large sample) stood at 4.4677 million mt this week, up 15,700 mt or 0.35% WoW, and down 9.86% YoY based on the lunar calendar.

In the third week after the holiday, the national social inventory continued to build up, but the growth rate significantly slowed. By region, while the south China and north-east China markets continued to see inventory buildup, the east China, central China, and north China markets began destocking. 【SMM Steel】

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

Steel mill inventory increased slightly 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.