SMM Steel News on May 27: According to SMM statistics, the estimated total resource shipments in the mainstream market this week were 278,400 mt, an increase of 70,900 mt WoW from the shipment level last week. By market:
Chart-1: Comparison of Arrivals in Mainstream Markets
Source: SMM Steel
Shanghai Market: This week, shipments in the Shanghai market increased slightly WoW. Specifically, shipments in the north-east, north and east China markets remained stable, while shipments from mainstream steel mill WG in south China increased WoW. Looking ahead, with prices weakening rapidly this week and market sentiment remaining relatively pessimistic, ordering enthusiasm is average. It is expected that HRC arrivals in Shanghai will continue at a moderately low level in the short term.
Chart-1: Arrivals in the Shanghai Market
Source: SMM Steel
Lecong Market: This week, shipments flowing to Lecong increased significantly WoW. Specifically, on the one hand, resources from north China remained stable. On the other hand, shipments of local mainstream resources DDH and WG increased WoW. Although WG had no shipments for three 10-day periods, the price advantage in south China was significant, and agents transferred many resources from east China to south China. Looking ahead, the current price advantage in south China remains relatively significant. However, some steel mills are still expected to shift their production focus from pig iron. Therefore, it is expected that there will be limited room for a continued increase in arrivals in the Lecong market in the short term.
Chart-2: Arrivals in the Lecong Market
Source: SMM Steel
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