[SMM Sheets & Plates Daily Review] Supply-Demand Imbalance Eases, Hot-Rolled Coil Prices Are Still Expected to Strengthen Next Week

HRC prices fluctuated downward this week, with weekly average prices edging down slightly and overall trading weakening. In terms of supply, more rolling line maintenance occurred this week, and overall HRC production edged down. Demand side, downstream sectors resumed work and restocked this week, traders showed greater purchasing enthusiasm, while stronger macro sentiment and raw material costs resonated, driving apparent demand to warm up. Inventory side, SMM's nationwide 86-warehouse (large sample) HRC social inventory was 4.7134 million mt this week, down 155,100 mt WoW, down 3.19% WoW. By region, inventory in the Northeast, North China, and east China markets declined notably, Central China market inventory decreased slightly, and South China market saw inventory buildup. Cost side, average ore prices edged down slightly, the third round of coke price increases was implemented, and HRC cost support strengthened slightly. Looking ahead, HRC supply-demand imbalance eased, cost support remained, and some fear-of-heights sentiment was released this week, so HRC prices may still strengthen next week. In summary, the most-traded HRC contract is expected to trade in the 3400-3490 range next week.