China’s HRC inventories in social warehouses and at steelmakers continued to fall this week.
HRC stocks down about 4.4% from the previous week
Gerber Steel data showed that HRC inventories fell by about 4.4% in the week ended March 25 from the previous week and about 31.80% from a year earlier.
HRC stocks in social warehouses fell by 156,700 mt week-on-week. This was about 27.50% lower than the same period last year. Trading was active this week due to further improvement in end-user demand, which led to a decline in HRC inventories.
- China: Inner Mongolia shuts down blast furnaces, converters and coking plants
- Tangshan: Important steel region in China facing one-year production cut?
- Production reductions: Operating rates of Chinese blast furnaces continue to fall (now at 85%)
Inventories at Chinese steelmakers fall by around 2.1%
Inventories at Chinese steelmakers totaled 1.09 million mt, down 2.1% from the previous week and 40.80% from a year earlier. The decline in HRC inventories at mills eased significantly this week as some steel mills affected by environmental regulations gradually resumed production. Five steelmakers recovered from maintenance this week.
HRC demand continues to rise due to high end-user demand
Steelmakers are likely to increase HRC production due to high profits. Robust orders from HRC end users will boost their demand for HRC. Prices are expected to continue to rise due to positive fundamentals.
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