Hot-rolled coil stocks decline in 3rd week after CNY as consumption recovers

SHANGHAI, Mar 1 (SMM) – Hot-rolled coil inventories in China stemmed consecutive gains this week as consumption recovered in the third week after the Chinese New Year holiday.

Stocks of HRC across social warehouses and steel mills dipped 1.1% from a week ago to stand at 3.75 million mt as of Thursday February 28, down 7.2% from the same period after 2018’s CNY break, SMM data showed.

For the week ended February 28, social inventories of HRC inched up 0.5% to 2.74 million mt, down 5.6% from a lunar year ago. The slight gain came after declines of 23% and 5% in the two previous weeks. As consumption continues to recover, HRC social inventories are expected to fall next week.

HRC stocks across steel mills decreased by 5.2% this week to stand at 1.01 million mt. This was down 11% from a lunar year earlier as bearish economic outlooks and weak manufacturing and auto sectors prompted steel mills to cut production.