Hot-rolled coil inventories edge down on the week

SHANGHAI, Aug 31 (SMM) – Stocks of hot-rolled coil (HRC), including social and in-plant volumes, decreased 0.6% from a week ago to 3.19 million mt as of Thursday August 30, 4.2% higher than the same period last year.

While overall HRC inventories across China edged down, stocks across warehouses at mills grew this week, reflecting low season demand, SMM research found.

For the same period, in-plant inventories increased 2% to stand at 1 million mt, up 16.8% year on year. Demand from end-users has not recovered significantly though some manufacturers in the home appliances sector received more orders as the Singles’ Day shopping festival in November neared.

Limited vessels available and higher shipping fees also slowed shipments of HRC resources.

Across social warehouses, fewer arrivals and brisk downstream purchases lowered HRC stocks 1.7% over the week to 2.18 million mt. This stood 0.7% lower than the same period last year. Typhoons delayed deliveries and there were fewer shipments from smelters at the end of the month.