[SMM Hot-rolled Arrivals] Arrivals in Mainstream Markets Decreased Significantly

SMM Steel reported on May 20 that according to SMM statistics, the estimated total shipments of resources in mainstream markets this week were 207,500 mt, a decrease of 37,000 mt WoW from the shipment level last week. By market:

Chart-1: Comparison of Arrivals in Mainstream Markets

Source: SMM Steel

Shanghai Market: Shipments in the Shanghai market continued to decline WoW this week. Specifically, shipments of resources from north-east China and north China remained basically stable, while shipments of resources from south China decreased significantly. Looking ahead, with the recent low prices in the Shanghai market and weak price advantages, merchants' purchase willingness is generally moderate. It is expected that arrivals in the Shanghai market will remain at a relatively low level in the short term.

Chart-2: Arrivals in the Shanghai Market

Source: SMM Steel

Lecong Market: Shipments flowing to Lecong decreased somewhat WoW this week. Specifically, on the one hand, shipments of resources from north China remained stable. On the other hand, shipments of the local mainstream resource DDH decreased slightly WoW, as its medium-thickness plate production line began mass production, and pig iron may have been diverted. Looking ahead, shipments of local mainstream resources will remain at a relatively low level in the short term. On the one hand, there is the issue of DDH's pig iron diversion. On the other hand, WG's shipments to south China were suspended in the third ten-day period of the month, and the shipment pace may slow down. Overall, the supply pressure is relatively small. Therefore, it is expected that arrivals in the Lecong market may continue to decrease in the short term.

Chart-3: Arrivals in the Lecong Market

Source: SMM Steel

SMM releases hot-rolled shipment data for mainstream market flows every Tuesday. To subscribe to or follow more data, please scan the QR code below.