SMM Steel News on August 5: According to SMM statistics, the estimated total resource shipments in mainstream markets this week were 280,500 mt, up 1.63% WoW from the shipping 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 declined slightly WoW. Specifically, shipments of resources from north-east China and east China remained stable, while shipments of resources from north China increased rangebound, and shipments of mainstream resources from south China declined. Looking ahead, with the recent strong performance of HRC prices, steel mills have a high enthusiasm for shipments. However, downstream fear of high prices has somewhat affected purchasing enthusiasm, and arrivals in the Shanghai market are expected to fluctuate rangebound in the short term.
Chart-2: Arrivals in the Shanghai Market
Source: SMM Steel
Lecong Market: This week, shipments flowing to Lecong continued to increase WoW. Specifically, on the one hand, arrivals of resources from north China increased, and on the other hand, shipments of local mainstream resources DDH and WG both increased WoW, leading to a continued increase in arrivals this week. Looking ahead, with the recent narrowing of the price difference between north and south China, steel mills also have a strong enthusiasm for production, and it is expected that the arrival level in Lecong will continue to remain at a relatively high level in the short term.
Chart-3: Arrivals in the Lecong Market
Source: SMM Steel
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