[SMM Hot-Rolled Steel Arrivals] Arrivals in Major Northern and Southern Cities Still Decreased WoW  

SMM Steel, December 9 – According to SMM statistics, estimated total shipments to mainstream markets this week were 186,300 mt, down 7.73% WoW from last week’s shipment level. By market:

Table 1: Comparison of Mainstream Market Arrivals

Data source: SMM Steel

Shanghai market: Shipments in the Shanghai market fluctuated rangebound WoW. Specifically, shipments from northern and east China steel mills remained stable, while shipments from mainstream steel mills in south China decreased slightly. Looking ahead, recent slight weakness in hot-rolled coil prices, cooling macro expectations, and weak transaction performance have dampened traders’ ordering enthusiasm in the short term. Shipments from mainstream markets are expected to fluctuate at low levels next week.

Chart 1: Shanghai Market Arrivals

Data source: SMM Steel

Lecong market: Shipments to the Lecong market decreased slightly WoW, mainly due to reduced arrivals from steel mills in north China. Going forward, the price spread between south and east China has narrowed recently, which may increase some steel mills’ shipment preference toward south China. However, mid-month production varieties at some mainstream steel mills may lead to phased reductions in arrivals. Amid these competing factors, the WoW increase in arrivals next week is expected to be limited.

Chart 2: Lecong Market Arrivals

Data source: SMM Steel

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