SMM Steel Report: Peak Season Demand Wanes, Hot-Rolled Coil Market Sentiment Turns Cautious Amid Cost Uncertainties

Published: Sep 4, 2024 07:30

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[SMM Steel Morning Meeting Summary: Gradual Verification of Fading Demand, Generally Cautious Sentiment among Hot-rolled Coil Downstream] In the spot market, the futures market continued to plummet as traditional peak season demand was gradually proven false, leading to insufficient market confidence and a more cautious downstream outlook, resulting in weaker hot-rolled coil transactions. On the supply side, the impact of hot-rolled coil maintenance this week amounted to 228,700 tonnes, an increase of 94,200 tonnes from the previous week, indicating a reduction in hot-rolled coil supply and a mitigation of fundamental contradictions. In terms of costs, coke prices are expected to stabilize, but iron ore prices have declined, leading to an unstable cost support for hot-rolled coils. In summary, the traditional peak season has arrived, but the increase in demand is not evident, with the market sentiment generally cautious. Coupled with unstable costs...

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