SHANGHAI, Jul 24 (SMM) – Chinese spot steel markets saw fewer arrivals of hot-rolled coil (HRC) from major producers this week, the first weekly decline since the top steelmaking hub of Tangshan deepened its production curbs at the end of June, showed an SMM survey.
About 194,000 mt of HRC shipped by major steelmakers arrived at Shanghai, Lecong and Tianjin, three major spot markets, this week, down 52,000 mt from last week.
Fewer shipments from Hebei steelmakers primarily accounted for this week’s decline in arrivals, suggesting that the physical markets began to feel the impact from production curtailments across mills in Hebei.
Shanghai and Lecong saw a combined reduction of 48,000 mt in arrivals of HRC from Tangshan Yanshan Steel this week.
Spot HRC trades earlier this month weakened to the worst since the low season, as prices erased gains from news of intensified anti-smog measures in Tangshan and other steelmaking hubs in Hebei at the end of June.
Quotes from steelmakers stood higher than spot prices so far this month, which deterred traders from ordering cargoes from mills. This also led to the decrease in arrivals.
Tangshan this week ramped up its curbs on steelmaking, to prepare for a meeting on environmental protection during July 26-28 and the 43rd anniversary of the Tangshan earthquake during July 27-28.
This is likely to further lower shipments from steelmakers to spot markets, and temper supply pressure.