[SMM HRC Weekly Balance] This Week's HRC Production Continued to Decline, Social Inventory Reduction Slightly Accelerated

• SMM HRC Weekly Balance

• HRC Production Declined MoM This Week

This week, HRC production declined MoM as some steel mills were affected by maintenance and regional environmental protection-driven production restrictions.

• HRC Social Inventory Continued to Decline This Week

This week, SMM statistics showed that the HRC social inventory across 86 warehouses nationwide (large sample) was 4.4704 million mt, down 85,500 mt or 1.88% MoM, and up 1.23% YoY based on the lunar calendar. The national social inventory continued to decline this week, with a larger decrease. By region, the South China and East China markets saw significant declines, while the Central China, North China, and Northeast China markets fluctuated rangebound. 【SMM Steel】

• HRC In-Plant Inventory Declined MoM This Week

This week, steel mill production decreased, and some mills actively shipped products, leading to a decline in in-plant inventory MoM.

Note:

1. SMM weekly HRC production/apparent demand/inventory data are based on a sample of 40 steel mills and 86 mainstream market warehouses nationwide.

2. As of October 31, 2024, SMM's weekly HRC production and steel mill inventory data covered 85% of the national HRC capacity.

3. SMM conducts surveys every Wednesday and releases the data on Thursday morning.