SHANGHAI, Aug 23 (SMM) – Social inventories of hot-rolled coil (HRC) in China declined for a second straight week this week, lowered by limited arrivals as shipments that were affected by Typhoon Lekima remained en route.
SMM data showed that HRC stocks across social warehouses decreased by 1.2% from a week earlier to stand at 2.43 million mt as of Thursday August 22, after shrinking for the first time in nearly three months last week.
This week’s decline was smaller than a 2.6% drop seen last week, as volatile prices of futures roiled the spot market and weakened trades.
In-plant inventories, however, inched up 0.3% week on week to 979,400 mt, posting three weeks of gains in a row, as Tangshan production curb easing from July and the faster-than-expected ramp-up of new capacity kept high output this month.
Improving demand for tubes, pipes and home appliances, meanwhile, bolstered orders that steelmakers received in August. This limited the gains in inventories of finished goods across steel mills amid high production.
Overall HRC stocks across social and in-plant warehouses in China came in at 3.41 million mt as of August 22, down 0.8% week on week but up 6.5% year on year.