SMM HRC Daily: Ferrous Metals Decline, HRC Spot Market Sluggish Amid Manufacturing Rebound

Published: Mar 31, 2025 18:26

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【SMM HRC Daily Review】Ferrous Metals Series Fluctuate Downward, Spot Market for HRC Remains Sluggish Throughout the Day
HRC futures fluctuated downward today, with the most-traded contract closing at 3,342 yuan/mt, down 0.86% for the day. Spot market transactions were moderate. On the news front, the National Bureau of Statistics (NBS) reported that the manufacturing PMI for March stood at 50.5%, up 0.3 percentage points MoM, indicating a continued rebound in manufacturing activity. According to the steel industry PMI surveyed and released by the Steel Logistics Professional Committee of the China Federation of Logistics & Purchasing, the steel PMI for March was 46%, up 0.9 percentage points MoM, marking the second consecutive month of MoM growth. During the day, the most-traded coking coal contract fell below the 1,000.0 yuan/mt mark, hitting its lowest level since October 2016. From a fundamental perspective, as we enter April, the impact of previous maintenance is expected to gradually weaken, leaving room for a rebound in HRC production. Demand side, the peak season demand from March to April has limited further upside potential, and the market may experience high volatility before mid-month. With a relatively small short-term imbalance, attention should be paid to the pace of production recovery and inventory levels. Before the HRC imbalance becomes apparent, HRC prices are expected to continue fluctuating rangebound in a weak trend.

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