Maintenance at Chongqing Iron & Steel to impact HRC output by 10,000 mt/day

SMM data showed that HRC stocks across social warehouses and steel makers rose 47,100 mt or 1.2% on the week, an increase of 5.8% than a year ago, to 3.99 million mt in the week ended July 15.

Shanghai base metals were mostly lower on Tuesday morning as investors awaited the release of China's trade data for June. Meanwhile, their counterparts on the LME also fell for the most part.

China HRC stocks across social warehouses and steel makers fell slower this week amid rising supply and weakening demand.

An SMM survey showed that 35 steel makers in China plan to produce a total of 10.06 million mt of hot-rolled coils and plates in April, up 2.3%, or 227,600 mt, from the realised output in March.

SMM data showed that HRC stocks shrank 162,700 mt or 4.52% from the previous week and 38.37% from a year earlier to 3.43 million mt in the week ended April 15.

China HRC stocks across social warehouses and steel makers fell slower this week due to the Qingming holiday and as trades weakened amid high prices.

Inventories of hot-rolled coils of steel sheets used to produce home appliances and cars in China continued to shrink this week, but the decline slowed slightly compared with the prior week as some steel makers recovered from maintenance.

An SMM survey showed that 35 steel makers in China plan to produce a total of 10.43 million mt of hot-rolled coils and plates in November, up 0.1% from the realised output in October.

SMM data showed that inventories of hot-rolled coils (HRC) and plates across social warehouses and steelmakers, which are used in automobiles and home appliances, increased 6.94% or 281,900 mt from September 24 in the week ended October 9 to 4.06 million mt. The stocks were 27.3% higher than the same period last year.

Most steelmakers in China continued to maintain full operations and the impact of maintenance on output will further reduce from a month ago in June, driven by existing profits of rebar.