[SMM HRC Arrivals] Arrivals Declined Narrowly WoW This Period  

SMM Steel, July 28 – According to SMM statistics, total estimated shipments of mainstream market resources this week were 241,900 mt, down 1.75% WoW from last week's shipment level. By market:  

Table 1: Comparison of Mainstream Market Arrivals

Source: SMM Steel  

Shanghai Market: HRC shipments in Shanghai increased WoW this week. Specifically, as the price spread between north and east China widened earlier, local procurement of northern resources increased, leading to concentrated recent arrivals at ports; shipments from south China steel mills were stable WoW. Going forward, the current price difference between north and south China remains high, so northern resources still offer procurement cost-effectiveness, while southern resources are relatively stable. In the short term, the arrival level of mainstream resources in Shanghai will have limited room for change.  

Chart 1: Shanghai Market Arrival Volume  

Source: SMM Steel  

Lecong Market: Shipments to Lecong decreased this week. Specifically, resources from north China were basically stable, with one of the two mainstream resources up and the other down; WG could not sustain the high shipments of last week, resulting in reduced arrivals this week. Going forward, mainstream resources have been shipped more to south China recently. As the price difference between south and east China is not significant currently, steel mills may shift shipments more towards the east China market. In the short term, arrivals in south China will remain in a consolidation range.  

Chart 2: Lecong Market Arrival Volume  

Source: SMM Steel  

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