[SMM Sheets & Plates Daily Review] Cost Support Weakens, Sheets & Plates Prices Pull Back

Today, the most-traded HRC contract extended the downtrend from last night's night session, recovered somewhat in the afternoon, and closed at 3,380, down 0.47% day-on-day. Spot prices for HRC and cold-rolled coil rose to varying degrees. In terms of supply, this week's impact from HRC maintenance was 95,100 mt, down 151,500 mt WoW. Next week's impact from HRC maintenance is expected to be 51,900 mt, down 43,200 mt WoW, with overall supply growth relatively small. Demand side, during the transition between seasons, end-use demand has yet to show a significant increase, and the futures-physical market's capacity to absorb supply weakened WoW. Cost side, yesterday's meeting between the heads of state of China and Mongolia included discussions on issues such as railway construction at border ports. Market concerns that Mongolian coal supply may gradually recover put pressure on coking coal and coke futures. Overall, short-term HRC prices continue to follow cost-side trends. Close attention should be paid to the actual supply situation of coking coal and coke, and the most-traded HRC contract will continue to consolidate at highs.

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