HRC inventories extend increases amid Tangshan curb ease, lower iron ore prices

Published: Aug 9, 2019 11:45

Save

Overall stocks across social and in-plant warehouses came in at 3.49 million mt as of Aug 8, up 0.8% from a week ago

SHANGHAI, Aug 9 (SMM) – Social inventories of hot-rolled coil (HRC) in China continued to grow this week, as buyers exercised caution amid eased production curbs in Tangshan, escalated tensions between the US and China and lower iron ore prices.

SMM data showed that HRC stocks across social warehouses rose for an 11th straight week, gaining 0.8% from a week ago to stand at 2.53 million mt as of Thursday August 8. The growth was limited by fewer arrivals, as rainfall in the south-west and Zhejiang impacted transportation.

Delivery disruption, together with production ramp-up from eased curbs in Tangshan and recovered profit margins, bolstered HRC stocks across steelmakers in China.

In-plant inventories rebounded 0.7% this week, to stand at 961,800 mt, with a year-over-year decline of 2.4%.

The net profits that mills can expect to get for producing HRC currently stand at about 100 yuan/mt. A separate SMM survey showed that planned HRC production across major Chinese steelmakers for August was 0.7% higher than July.

Overall stocks across social and in-plant warehouses in China came in at 3.49 million mt as of August 8, up 0.8% week on week and 9.1% year on year.

Inventory data Hot-rolled coil HRC Steel

Data Source Statement: Except for publicly available information, all other data are processed by SMM based on publicly available information, market communication, and relying on SMM‘s internal database model. They are for reference only and do not constitute decision-making recommendations.

For any inquiries or to learn more information, please contact: lemonzhao@smm.cn

For more information on how to access our research reports, please contact:service.en@smm.cn

Related News

4 hours ago

Market Gradually Digested Bearish Sentiment, Steel Prices May Hold Up Well Following Costs [SMM Steel Industry Chain Weekly Report]

This week, ferrous metals exhibited a pattern of initial weakness followed by strength. At the beginning of the week, after the U.S.-Iran peace talks failed to reach an agreement, the U.S. military announced it would impose a blockade on all maritime traffic in and out of Iranian ports, pushing international oil prices higher once again. Mid-week, disturbances from iron ore long-term contract negotiations intensified, with market rumors suggesting that restrictions on certain previously limited products had been partially lifted. Subsequently, news emerged of an unexpected shutdown at an Australian refinery, raising market concerns that a diesel supply deficit could trigger mine shutdowns, which in turn would lead to short-term supply tightening. Coupled with rising expectations of a second round of coke price increases, ferrous metals successfully rallied in the latter half of the week...

4 hours ago

Bank of Jiujiang Hefei Branch Approves 280M Yuan Credit Line for Anhui Lukong Environmental Protection

[Secondary Lead Market Update] It was reported that recently, the Hefei Branch of Bank of Jiujiang, in response to the characteristics of the secondary lead industry — "capital-intensive raw material procurement and urgent production turnover needs" — assembled a professional team and customized a comprehensive financial service plan, ultimately approving a credit line of 280 million yuan for Anhui Lukong Environmental Protection Co., Ltd.

4 hours ago

8 hours ago

Copper Prices Rebound with Firm Scrap Coefficients: The Era of "Regional Circulation"

Despite rebounding copper prices, Asian spot scrap supply remains tight, with pricing coefficients unexpectedly firm (Bare Bright holding around 98.5%). Concurrently, Western spot offers are shrinking. As the Aurubis Richmond smelter absorbs ~180,000 tonnes annually and US domestic cable shredding capacity rapidly expands, both the volume and quality of US scrap exports to Asia are declining. This structural shift is slashing transoceanic trade, accelerating the era of "regional circulation" for recycled copper. Currently, the squeeze primarily hits intermediate traders with sluggish volumes, while downstream end-consumers report limited immediate impact.

8 hours ago