SHANGHAI, Sep 3 (SMM) – SMM data showed that HRC stocks across social warehouses and steel makers dipped 141,400 mt or 3.56% on the week, a drop of 2.87% than a year ago, to 3.84 million mt in the week ended September 2, according to SMM data. HRC inventories fell for the third consecutive week, and the decline in the total inventory expanded amid slightly rebounding end demand.
Inventories across social warehouses decreased 110,500 mt or 3.66% week on week to 2.91 million mt. This is 5.72% higher than the same period last year.
The inventory decline was more significant in north and south China. Some steels in north China reduced production for maintenance, where the supply pressure was alleviated. The end purchase in north China increased.
Stocks at Chinese steel makers came in at 927,500 mt, down 31,000 mt or 3.23% week on week and 22.60% year on year.
The in-plant stocks of HRC declined more significantly this week and the deliveries were more smooth after the pandemic was controlled.
The supply and demand of HRC grew simultaneously. Some large scale state-owned steel companies have recently received notices requesting to complete the production cut, and the production reduction may be more significant than expected in September. The further decreased supply is likely to support the more rapid inventory decline.
