China's HRC Production Dips as Inventory Declines

Mumbai, April 18 (Commoditiescontrol):China's hot-rolled coil (HRC) production decreased in the week ending April 25th, according to a report by Shanghai Metals Market (SMM). Production at 41 surveyed steel mills reached 3.4447 million metric tons, marking a 24,100-metric-ton decrease from the previous week. The decline is attributed to rolling line maintenance in northern Chinese mills. SMM notes that additional maintenance schedules from steel mills in eastern China are expected next week, potentially causing a further drop in production over the next one to two weeks.

Social inventory of HRC across 86 Chinese warehouses decreased to 4.0239 million metric tons as of April 25th, a week-on-week decline of 41,800 metric tons (1.03%). Notably, inventories declined across most regions in China, with the exception of the southern market. In-plant HRC inventory also continued its downward trend, reaching 1.1816 million metric tons, likely due to adjusted shipment schedules at various steel mills.

As of January 1st, 2024, SMM's weekly HRC production and in-plant inventory surveys reflected 81% of China's total HRC capacity.

(By Commoditiescontrol Bureau; +91-9820130172)