[SMM Sheets & Plates Daily Review] The most-traded HRC contract price is expected to stay high in the short term

The most-traded HRC futures contract rose throughout the day, closing at 3,395, up 0.62% for the day. In the spot market, hot-rolled prices increased by 10-20 yuan/mt, while cold-rolled prices remained stable. Market transactions improved slightly today, mainly driven by spot-futures purchases, while end-users remained cautious. According to the SMM survey, this week's impact from HRC maintenance was 131,000 mt, down 43,200 mt WoW. Next week's impact from HRC maintenance is expected to be 180,100 mt, up 49,100 mt WoW, indicating an increase in supply. Demand side, the market has entered the verification period of the September-October peak season, but overall, end-user order-taking fell short of expectations, with no significant purchasing activity released. With the spot-futures price spread narrowing, the willingness to purchase via futures has improved. Overall, the weak fundamentals of sheets & plates will continue to cap upside room in the futures market, but the strong support from the cost side remains reliable in the short term. Therefore, the most-traded HRC futures contract price is expected to fluctuate at highs in the near term.