[SMM Hot-rolled Arrivals] Arrivals in South China increased significantly this week

SMM Steel News on July 15th: According to SMM statistics, the estimated total shipments of resources in the mainstream market this week were 264,000 mt, up 17,000 mt from the shipment level of the previous week. By market:

Chart-1: Comparison of Arrivals in Mainstream Markets

Data source: SMM Steel

Shanghai Market: Shipments in the Shanghai market decreased on a WoW basis this week. Specifically, shipments of resources from north-east China increased slightly, while shipments of mainstream resources from South China decreased. Shipments of resources from east China and north China remained stable. Looking ahead, given the relatively low price advantage in the Shanghai market recently, steel mills' shipments will mainly remain stable. Considering the impact of maintenance at some steel mills in north-east China in the latter half of the month, shipments of resources from north-east China may decrease at that time.

Chart-2: Arrivals in the Shanghai Market

Data source: SMM Steel

Lecong Market: Shipments to the Lecong market increased significantly on a WoW basis this week. Specifically, on the one hand, arrivals of resources from north China increased. On the other hand, shipments of local mainstream resources WG returned to a relatively normal level on a WoW basis. Overall, arrivals increased significantly this week. Looking ahead, it has been reported that WG will offer discounts in the latter half of the month, but this will have little impact on the arrival rhythm. Given the better price advantage in east China, DDH has a tendency to redirect shipments. It is expected that the arrival level in Lecong will mainly remain stable in the short term.

Chart-3: Arrivals in the Lecong Market

Data source: SMM Steel

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