[SMM HRC Arrivals] Arrivals in the South China Market Increased WoW This Week

SMM Steel, April 21: According to SMM statistics, estimated total shipments from mainstream markets this week were 145,800 mt, down 20.24% WoW. By market:

Table 1: Mainstream Market Arrivals Comparison

Data source: SMM Steel

Shanghai market: Shipments of HRC to the Shanghai market remained at a relatively low level this week. Specifically, shipments from northeast and east China were flat, shipments from north China saw a slight increase, while shipments from mainstream steel mills in south China dropped significantly. Shipment levels this week fell to a low point, mainly due to recent adjustments in shipment product mix and flow direction by mainstream steel mill WG. In the short term, Shanghai's price advantage was not strong, coupled with adjustments in the shipment pace of south China steel mills, shipments to the Shanghai market were expected to remain at a relatively low level.

Chart-1: Shanghai Market Arrivals

Data source: SMM Steel

Lecong market: Shipments to Lecong increased WoW this week. Specifically, resources from north China remained relatively stable WoW, while local resources showed some divergence. One steel mill recently had higher export and specialty steel production with fewer shipments, but as south China prices remained elevated recently, some steel mills showed a greater inclination to ship to south China. Going forward, Lecong prices were at a high level nationally, and mainstream resources still had an inclination to increase shipments to south China, so Lecong arrivals were expected to see further increase opportunities in the short term.

Chart-2: Lecong Market Arrivals

Data source: SMM Steel

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