[SMM Weekly Data] HRC Arrivals Decline Across Mainstream Markets in China

SMM Steel, June 2 — According to SMM statistics, estimated total shipments to mainstream markets this week were 184,700 mt, down 8.70% WoW.By market:

Table 1: Mainstream Market Arrivals Comparison

Data source: SMM Steel

Shanghai market: Shipments of hot-rolled coils to the Shanghai market edged down slightly WoW. Specifically, shipments from mainstream steel mills in the northeast and south China decreased, while shipments from east China and north China steel mills remained stable. Looking ahead, arrivals of northern resources are expected to see relatively small fluctuations in the short term. For the south China market, given the slower shipment pace in the earlier period, the shipment pace is expected to pick up in June. Arrivals at the Shanghai market are expected to edge up slightly over the next one to two weeks.

Chart-1: Shanghai Market Arrivals

Data source: SMM Steel

Lecong market: Shipments destined for Lecong continued to decline WoW. Specifically, north China resources remained largely stable WoW. The recent narrowing of the price spread between south China and east China has dampened the enthusiasm for shipping some resources, leading to a continued decline in overall arrivals. Going forward, earlier northern materials have largely arrived, and the current price spread is insufficient to support client orders. Combined with the still-close prices between south China and east China, the shipping preference for some resources will continue, and Lecong arrivals are expected to remain stable in the short term.

Chart-2: Lecong Market Arrivals

Data source: SMM Steel

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