[SMM Hot-Rolled Arrivals] South China Arrivals Increased Significantly WoW

SMM Steel, November 4 – According to SMM statistics, the estimated total shipments of mainstream markets this week were 245,800 mt, up 31.51% WoW. By market:

Table 1: Comparison of Mainstream Market Arrivals

Data source: SMM Steel

Shanghai market: Shipments in the Shanghai market decreased WoW. Specifically, the reduction mainly came from steel mills in Northeast and South China. Some mills recorded a large shipment increase last week, but pulled back this week. Looking ahead, recent hot-rolled coil prices have been fluctuating at lows, spot cargo transactions performed poorly, and market ordering enthusiasm remained moderate. Arrivals in the Shanghai market are expected to drop back slightly next week.

Chart 1: Shanghai Market Arrivals

Data source: SMM Steel

Lecong market: Shipments to Lecong increased significantly WoW. Specifically, arrivals of resources from North China increased WoW, and mainstream resources also rose WoW. This was mainly due to the previous typhoon impact, which slowed down steel mill shipments, but recently accelerated transport resumed. Going forward, prices in South China still lag behind East China, and some mills still show certain shipment preferences. The increase in short-term arrivals is expected to be unsustainable.

Chart 2: Lecong Market Arrivals

Data source: SMM Steel

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