[SMM Steel] Typhoon Hagupit landed in East China, the impact of steel spot market

The fourth typhoon "Hagupit" made landfall in Yueqing, Zhejiang province around 03:30 today. The maximum wind at the center was force 13 when it made landfall. Under the influence of "Hagupit", strong winds and torrential rain occurred in many parts of Zhejiang Province, and air, railway and waterway traffic was disrupted.

The landing of the typhoon also had a certain impact on the steel spot market in East China. The "three defenses" headquarters of Hangzhou Traffic Port and Shipping decided to activate the Taiwan defense level 3 response at 14:30 on the 4th. Sanbao Shiplock, Xinba Shiplock and Riverside Lock were released one-way, all passenger ferries in the navigation area returned to Hong Kong and stopped sailing, the port wharf stopped loading and unloading operations, and the wading construction stopped. Starting from the afternoon of August 4, Hangzhou sublimation and Renhe Wharf will suspend delivery.

As of 18:00 on August 4, the center of Typhoon Hagupit has moved to Shaoxing, Zhejiang, heading towards Hangzhou, Jiaxing and Suzhou, and is expected to arrive in Jiangsu Province in the early morning of August 5. In addition, it was learned from the meteorological department of Anhui Province that Typhoon Hagupit is expected to affect Anhui Province on the evening of the 4th. Affected by it, there are showers or thunderstorms in the south and south of the Yangtze River, moderate to heavy rain in some areas, and local torrential rain in Huangshan and Xuancheng.

In the short term, areas within the typhoon track will encounter disastrous weather such as heavy rainfall and strong winds, affecting steel transportation and site construction. According to SMM, the current typhoon has caused floods, strong winds and other disaster weather in some areas of Jiangsu and Zhejiang, affecting road traffic and construction sites. According to the feedback of traders, the construction sites in Wenzhou and Jinhua have been forced to stop work, and the specific resumption time still needs to observe the weather conditions. In terms of transactions, the current typhoon weather has not significantly suppressed the ordering rhythm of the terminal site to traders, only in the steel warehouse.

According to the typhoon track map released by the current meteorological station, on August 4, Hagupit mainly affected Zhejiang Province, with a wind of magnitude 9; it moved to Jiangsu Province in the early morning of August 5 and passed through Jiangsu Province around August 6, with a wind of force 8. Then it turned to the Yellow Sea and withdrew from mainland China.

Typhoons of magnitude 8-9 belong to strong winds: the land will break the branches and feel great resistance when moving forward. Various regional departments have issued emergency response measures, some railways are out of service, and port terminals stop loading and unloading operations, which will temporarily affect the transportation and demand of local steel. However, in terms of time, the transit speed of the typhoon is fast, and Hagupit stays in Hangzhou and Jiangsu Province for only one day, and it is expected that the docks and construction sites will soon resume normal operation, which has little impact on the overall steel market in East China.