SMM Analysis: Can Lecong's 11-Week Decline Extend Amid Rising Supply Concerns?

[SMM Analysis: Decline, Decline, Decline, Decline, Decline - Can Lecong's 11-Week Decline Continue?]

According to SMM, under the current inventory, except for the 4.95 specification, other specifications in Lecong generally have a premium. Although mainstream resources shipments increased this week, most of the cargo has already been sold, so it will not significantly affect the current inventory structure, and short-term inventory reduction can still be maintained. Looking ahead, due to production and shipment dumping, coupled with the need for mainstream steel mills to ensure arrivals in the Lecong market, Lecong's supply will steadily recover and continue to be at the same level as in previous years, while demand will remain neutral. Therefore, overall, with the increase in supply, Lecong's HRC inventory may face the risk of inventory buildup in early to mid-December...