China HRC inventories fell slower this week amid rising supply and weakening demand

SHANGHAI, Apr 22 (SMM)—China HRC stocks across social warehouses and steel makers fell slower this week amid rising supply and weakening demand.

SMM data showed that HRC stocks shrank 41,300 mt or 1.2% from the previous week and 37.74% from a year earlier to 3.39 million mt in the week ended April 22.

Inventories across social warehouses declined 31,600 mt or 1.43% week on week to 2.49 million mt. This was 37.99% lower than the same period last year. Trades weakened significantly this week as HRC prices fluctuated range-bound, which led to the narrower decline in social inventories.

Stocks at Chinese steel makers came in at 907,300 mt, down 5,200 mt or 0.57% week on week and 37.07% year on year. HRC output rebounded this week as many steel makers recovered from maintenance and some blast furnaces in Hebei restarted production.

Shipments out of warehouses are likely to rise next week as end users will restock before the Labour Day holiday, but weaker fundamentals may weigh on HRC prices in the future.