[SMM Hot-Rolled Arrivals] Arrivals in major northern and southern cities diverged this week.  

SMM Steel, November 18 – According to SMM statistics, estimated total shipments to mainstream markets this week reached 201,800 mt, down 2.61% WoW. By market:

Table 1: Comparison of Arrivals in Major Markets

Data source: SMM Steel

Shanghai market: Shipments to the Shanghai market increased WoW. Specifically, the increase mainly came from adjustments in shipment pace by some steel mills in north China and south China, while shipments from mills in northeast China and east China remained stable. Looking ahead, hot-rolled coil prices struggled to rise recently, and demand-side release remained under pressure. Shipments from steel mills are expected to fluctuate rangebound in the next 1–2 weeks.

Chart 1: Arrivals in Shanghai Market

Data source: SMM Steel

Lecong market: Shipments to the Lecong market decreased noticeably WoW. Specifically, arrivals of resources from north China remained low. Due to the diminished price advantage in south China and high inventory pressure, most steel mills adjusted their shipment flows. Meanwhile, some mills had production plans for other product varieties mid-month, leading to relatively low overall arrivals. Going forward, as the price spread between south China and east China narrowed, shipments from some mills may increase. Arrivals are expected to rebound from low levels next week.

Chart 2: Arrivals in Lecong Market

Data source: SMM Steel

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