[SMM Hot-Rolled Arrivals] South China Arrivals Fell While East China Rose This Week

SMM Steel December 23 – According to SMM statistics, the estimated total resource shipments in mainstream markets this week were 270,400 mt, down 6.05% WoW from last week’s shipping level. By market:

Shanghai Market: Shipments from the Shanghai market increased slightly WoW. Specifically, shipments of mainstream resources from North and South China rose, while shipments from Northeast and East China remained stable. Looking ahead, hot-rolled coil prices moved sideways, market transactions showed mediocre performance, and against the backdrop of the off-season, merchants maintained cautious purchase willingness. It is expected that there will be limited room for further growth in Shanghai market shipments next week.

Lecong Market: Shipments to the Lecong flow decreased significantly WoW. Specifically, due to the insignificant price spread between South and East China, DDH's shipment preference toward South China weakened, while another mainstream steel mill maintained relatively high production. Going forward, as the price spread between South and East China remains insignificant and inventory pressure in South China is high, shipments from some steel mills to South China are limited. Meanwhile, WG is expected to maintain a high shipment level. Therefore, short-term arrivals in the South China market are projected to remain stable.