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[SMM Hot Volume] the price difference between the north and the south is expected to recover from the sustained low volume of shipments.
Apr 14,2020 17:09CST
translation
Source:SMM
The content below was translated by Tencent automatically for reference.

SMM Steel, April 14, this week's mainstream market resources delivered a total of 122000 tons, an increase of 16000 tons from last week. Among them,

 

Shanghai market: 57000 tons of hot rolls arrived this week, an increase of 15000 tons over the previous month;

Lecong market: hot rolls delivered 40, 000 tons this week, down 3000 tons from the previous month;

Tianjin market: 25000 tons of hot rolls arrived this week, an increase of 4000 tons over the previous month;

Statistics show that the volume of music from hot rolls to shipments continued to decline this week. Mainly due to the recent Lecong market spot price and northern spot price gap is still small, traders order serious upside down, coupled with Wangang hot coil production decline, reduce the release of Lecong, resulting in the arrival of goods from the market is still low. In contrast, Shanghai has seen a marked increase in arrivals. Mainly due to the unsealing of Wuhan, the gradual resumption of transportation, WISCO hot coil resources have been put into the Shanghai market, coupled with part of Rizhao Iron and Steel settlement resources sent to Shanghai, resulting in a significant increase in the arrival of goods this week.

In addition, according to SMM, under the influence of price spread, Tonggang, Jianlong and other steel mills in April have reduced the volume of investment in the Lecong market, coupled with the low willingness of traders to order under the condition of loss, so it is expected that the subsequent arrival volume will continue to be less, mainly to digest the local inventory. In view of this, Le Congong market inventory pressure will gradually ease, spot prices are also relatively strong, the north-south price gap may gradually repair.

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