[SMM Steel]

This week, steel port departures at China's main ports totaled 3.3272 million mt, up 8% WoW.

Ferrous metals fell across the board today. The most-traded HRC contract settled at 3,272, down 1.06%. In the spot market, cold-rolled and hot-rolled prices fell by 10-30 yuan/mt, with overall sluggish trading and end-users mainly holding a wait-and-see stance. In the short term, regarding HRC fundamentals, production continued to fluctuate at mid-to-low levels due to profit constraints and production restrictions in some regions, while demand was suppressed by the off-season and extreme weather, leading to a simultaneous weakening of supply and demand. Inventory is expected to enter a slow buildup cycle in July, and from a fundamental perspective, it is difficult to provide strong support or momentum for prices. In other aspects, the market has recently focused on marginal changes in export orders, the progress of iron ore long-term contract negotiations, and whether the Politburo meeting in mid-to-late July can trigger a periodic price rebound. In the short term, sheets & plates prices will continue to consolidate at lows, while attention should be paid to whether related news amplifies price volatility in stages.