China HRC inventories fell steadily this week

SHANGHAI, Apr 1 (SMM)—China HRC stocks across social warehouses and steel makers fell steadily this week.

SMM data showed that HRC stocks shrank 179,600 mt or 4.59% from the previous week and 35.47% from a year earlier to 3.73 million mt in the week ended April 1.

Inventories across social warehouses declined 134,300 mt or 4.76% week on week to 2.69 million mt. This was 34.87% lower than the same period last year. Downstream demand was stable, but high prices slowed down procurements. In addition, some port stocks were shipped to social warehouses, which led to a smaller decline in HRC social inventories.

Stocks at Chinese steel makers came in at 1.04 million mt, down 45,300 mt or 4.16% week on week and 36.98% year on year.

HRC output will rise sharply in April, but robust orders at end users and strong demand from infrastructure and real estate sectors will support HRC prices in April.