Data: SHFE, DCE market movement (Jun 16)

[SMM HRC Daily Trading Volume] On June 16, the total daily trading volume of hot-rolled coil among sample enterprises in SMM's four cities (Shanghai, Lecong, Tianjin, Ningbo) was 13,990 mt, down 1,000 mt day on day, or -6.8%, with Gregorian calendar YoY at -9.45% and lunar calendar YoY at +46.65%

HRC futures prices were in the doldrums today, with the most-traded contract closing at 3,382, up 0.29%. In the spot market, spot HRC prices saw a slight correction in many regions during the day, while cold galvanized prices were largely stable. On the news front, Zhangjiagang HRC inventory this week was 271,000 mt, down 2,000 mt WoW, a 0.73% decline. The pace of inventory decline in Zhangjiagang slowed WoW, with destocking gradually slowing recently due to weakening downstream demand. From a fundamental perspective, HRC inventory is expected to continue destocking this week. The accumulation of supply-demand imbalance in sheets & plates is limited. The market will likely follow raw material prices to trade sideways this week, awaiting inventory turning to build or a drop in hot metal output to trigger a supply-demand imbalance in raw materials.