[SMM Analysis] Ningbo HRC Inventory Rises, Post-Holiday Demand Lags Expectations

According to SMM survey, this week, SMM large-caliber HRC inventory in Ningbo stood at 403,800 mt (as of 9.23), up 26,600 mt WoW.

Data Source: SMM

This week, HRC futures prices initially weakened before edging higher, but remained lower compared with the 9.30 level. Nationwide HRC spot prices were lowered by 10-30 yuan/mt in tandem. Intraday quotes in Ningbo were at 3,280-3,290 yuan/mt. In terms of transactions, post-holiday demand recovery fell short of expectations, with downstream end-users showing limited willingness to purchase. Overall trading was weak. This week, inventory buildup continued mainly due to the holiday, but next week's inventory is expected to see limited destocking, with narrow fluctuations likely.

Data Source: SMM

The latest balance data for this week are as follows: SMM statistics show HRC social inventory across 86 warehouses nationwide (large sample) at 4.915 million mt, up 308,200 mt MoM, or up 6.69% MoM, and up 19.98% YoY. By region, all markets across the country saw inventory buildup, with larger increases in east China and north China.

Data Source: SMM

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