【SMM HRC Social Inventory Overview】Weak Supply, Strong Demand, Inventory Decline Expands
This week, SMM's nationwide survey of 86 warehouses (large sample) showed HRC social inventory at 3.8347 million mt, down 195,800 mt MoM, a 4.86% MoM decrease, and an 8.8% YoY decline. The national social inventory continued to decrease this week. By region, the declines in south China, east China, and north China markets were larger than those in central China and north-east China markets.
Some steel mills shifted pig iron production, leading to a slight reduction in HRC supply. Futures fluctuated rangebound, and market procurement demand improved compared to the previous period. With weak supply and strong demand, the decline in social inventory expanded. Looking ahead, steel mills remain highly motivated to produce, with few new maintenance plans, and supply pressure is expected to rebound. However, demand release remains resilient, and the national social inventory is expected to continue to decrease in the short term.
