HRC inventories rose for 3 weeks as demand weakened ahead of CNY holiday

SHANGHAI, Jan 10 (SMM) – Inventories of hot-rolled coil (HRC) in China rose this week for a third straight week, as demand weakened ahead of the Chinese New Year holiday and as enticing profits kept mills in high gear.

SMM data showed that stocks of HRC across social warehouses and steelmakers in China increased 4.1% to 2.56 million mt in the week ended January 9, after an increase of 2.2% in the previous week. This was 11.5% lower than a year ago.

Stocks at social warehouses accounted for 1.71 million mt, down 11.8% from a year ago but up 5% from a week ago, marking a second straight week of gains.

For the same week, HRC inventories at steelmakers increased 2.2% to 849,400 mt, after a decline of 2.1% in the prior week. Mills such as Shagang stepped up production this week for the upcoming January delivery, while some mills recovered from maintenance.