SHANGHAI, May 7 (SMM)—China HRC stocks across social warehouses and steel makers rose sharply this week as output continued to increase while shipments out of warehouses also halted during the Labour Day holiday.
SMM data showed that HRC stocks expanded 178,100 mt or 5.27% from the previous week to 3.56 million mt in the week ended May 6. This was 29.09% lower compared with the same period last year.
Inventories across social warehouses rose 119,500 mt or 4.87% week on week to 2.57 million mt. This was 30.83% lower than the same period last year. The Labour Day holiday and the upcoming delivery of the May contract led to the rebound in HRC social inventories.
Stocks at Chinese steel makers came in at 984,300 mt, up 58,600 mt or 6.33% week on week, but down 24.07%% year on year. HRC output rose slightly this week, and shipments of cargoes from steel mills to social warehouses were affected due to the Labour Day holiday.