HRC Arrivals in Shanghai, Tianjin, and Lecong All Fell on Week under Dual Control

SHANGHAI, Sep 29 (SMM) – According to SMM statistics, the total HRC arrivals at the market are expected to stand at 255,000 mt, a month-on-month decrease of 49,000 mt or 16%.

Shanghai Market: The HRC arrivals in Shanghai declined on the week, mainly because the goods from north-east China fell significantly after the intensive arrivals in the previous two weeks, while the goods from north China increased.

The HRC output in north-east China is expected to fall sharply in October due to the dual control policy, and the supply to east China may be in shortage. The arrivals from north-east China may start to stand at the lowest level since mid-October.

The production in the steels mills in north China stands normal, and the shipments are stable. The goods from north China is likely to be the major HRC supply to Shanghai market before the heating season and the Winter Olympics.

Lecong Market: The HRC arrivals in Lecong fell significantly to hit a lowest level since March 2021. The goods from north China gradually declined as the prices in Lecong stood lower than east China for a long time.

The arrivals of WG and LG HRC also dropped due to the dual control, the higher profits of construction steel, and the maintenance for some production lines.

The arrivals in Lecong are expected to further decline amid the strengthened dual control in Guangxi, as the local steel mills have planned to reduce production in October.

Tianjin market: The arrivals in Tianjin decline on the week and the traders’ purchase was flat amid the weak downstream demand due to the dual control on energy consumption. The arrived goods were mainly for the long-term orders.