China HRC inventories were stable week on week

SHANGHAI, Sep 11 (SMM)—Inventories of hot-rolled coils of steel sheets used to produce home appliances and cars in China were largely stable on the week as the increase in in-plant stocks was offset by the dip in social inventories.

SMM data showed that the overall inventories of hot-rolled coils (HRC), including stocks across Chinese steelmakers and social warehouses, dipped 0.06% from the previous week to 3.95 million mt, but this was 20.07% higher than a year ago.   

China HRC inventories across social warehouses

HRC social inventories shrank 0.31% on the week, but rose 17.94% on the year, to 2.74 million mt this week, as some traders sold off cargoes to reduce stocks after HRC futures weakened. In addition, cargoes from the north piled up at ports in east China, slowing shipments to social warehouses.

HRC inventories across Chinese steelmakers

HRC stocks across Chinese steelmakers increased 0.53% on the week and 25.22% on the year to 1.2 million mt this week as some smelters recovered from maintenance. Sales at steel mills decreased this week, and the typhoon weather in northeast China also affected shipments from local steel mills.

Currently, HRC output stands at high levels, with scheduled production for September 0.3% higher month on month at 10.46 million mt, according to an SMM survey, while demand is expected to improve as September is a traditional high season for the manufacturing sector.