[SMM Hot-Rolled Arrivals] Steel Mills Show Strong Shipping Enthusiasm, Mainstream Regions See an Increase in Arrivals

SMM Steel, January 7 - According to SMM statistics, the estimated total shipments in mainstream markets this week reached 283,500 mt, up 14,200 mt WoW. By market:

Table 1: Comparison of Arrivals in Mainstream Markets

Data Source: SMM Steel

Shanghai Market:This week, shipments in the Shanghai market fluctuated rangebound on a WoW basis. Specifically, shipments from north-east China decreased, while shipments from north and south China slightly increased. Shipments from mainstream steel mills in east China remained stable on a WoW basis. Looking ahead, domestic steel mills' HRC production schedules in January are expected to increase, coupled with active shipments from some mills before the Chinese New Year. It is anticipated that HRC arrivals in January will still have room for a slight increase.

Chart-1: Shanghai Market Arrivals

Data Source: SMM Steel

Lecong Market:This week, shipments to the Lecong market increased on a WoW basis. Specifically, the price difference between north and south China no longer provided an advantage this year, resulting in fewer resources from the north being shipped south YoY. However, shipments of mainstream local resources in south China increased, leading to an overall rise in arrivals on a WoW basis. Looking ahead, according to the SMM survey, mainstream resources in south China are expected to maintain full production in January, with a production focus on ordinary carbon resources. Shipments to the Lecong market are likely to continue increasing.

Chart-2: Lecong Market Arrivals

Data Source: SMM Steel

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