HRC Output Picked Up and Decline in Inventory Narrowed

SHANGHAI, Mar 28 (SMM) - The total HRC inventory dropped 1.9% on the week, with social inventory falling 3.2%, and in-plant inventory at steel mills rising 2.3%. The decline in total inventory and social inventory narrowed last week while the in-plant inventory increased. Falling HRC prices encouraged terminals to restock, leading to decline in inventory. The social inventory in north, south and north-east China fell sharply as the demand that had been suppressed by high prices in the early stage was released. The in-plant inventory increased as the HRC output of steel mills increased. Looking at the follow-up stage, the recent price drop will aggravate the wait-and-see sentiment of terminals, but falling prices will help the release of terminal demand. It is expected that the total inventory of HRC will continue to fall this week.