Social Inventory of HRC Ushered in a Pivot Last Week

SHANGHAI, Feb 20 S(MM) - The total HRC inventory dropped 2.6% on the week, with social inventory falling 2.7%, and in-plant inventory at steel mills contracting 2.2%. The total inventory and social inventory stopped rising last week and the decline in in-plant inventory expanded. The downstream and terminal demand has further improved last week, and social inventories in many mainstream markets started to decline. In the follow-up stage, the favourable macro policies and improving market confidence will further boost the terminal demand for HRC. Coupled with the stable supply, it is expected that the HRC inventory will continue to decline this week.