[SMM Survey] HRC Arrivals Across China's Major Markets Pick Up This Week

SMM Steel, August 11 – According to SMM statistics, estimated total shipments of mainstream resources to the market were 260,400 mt this week, up 43.63% WoW. By market:

Table 1: Mainstream Market Arrivals Comparison

Data Source: SMM Steel

Shanghai: HRC shipments to the Shanghai market rose significantly WoW. Specifically, there was no notable change in northern resources; shipments from South China steel mills increased substantially MoM, mainly because some vessels were forced to suspend sailings last week due to a typhoon, leading to relatively concentrated shipping activity this week. Going forward, northern resources remain competitively priced on a procurement cost basis, while southern arrivals face a certain probability of decline next week given this week's high base, so mainstream resource arrivals in Shanghai are likely to be lower in the short term.

Chart-1: Shanghai Arrivals

Data Source: SMM Steel

Lecong: Shipments to the Lecong market nearly doubled in incremental terms this week. Specifically, there was still minimal resource arrival from North China, while DDH, which had low shipments last week, returned to normal shipping levels this week. Looking ahead, the current level of arrivals in South China remains low. WG recently saw modest export orders, and domestic trade resources may see some increase this month, so some incremental growth potential is still expected in South China in the short term.

Chart-2: Lecong Arrivals

Data Source: SMM Steel

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