[The journey of destocking hot-rolled coil inventories in northern cities has a long way to go]

In terms of demand, the influence of the off-season is prominent, coupled with the fact that it is difficult for favorable policies to be introduced in August. Downstream terminals mostly purchase on demand, but due to the reduction in orders, actual hot-rolled coil purchases are at a low level. On the supply side, the profits of hot-rolled coils are still acceptable, and the accumulation of inventories has not yet reached an overwhelming situation. Most steel mills have low willingness to reduce production. According to SMM research, the impact of hot-rolling maintenance next week will be 160,000 tonnes, a decrease of 45,000 tonnes from this week. Some steel mills have also resumed production on hot-rolling production lines. Therefore, it is expected that the pressure on the accumulation of hot-rolled coil inventories in northern cities will further increase in the following days, and the journey of destocking inventories has a long way to go...