SMM HRC Daily: Inventory Declines, Market Fluctuates Rangebound with Modest Upside

[SMM HRC Daily Review: HRC Inventory Continues to Deplete, Short-term Fluctuation Rangebound]​​

HRC futures fluctuated rangebound and upward during the day, with the most-traded contract closing at 3,562, up 0.14% MoM. Spot market transactions were generally average, with spot prices remaining stable. Supply side, HRC production increased by 11,400 mt WoW, with a relatively small overall increase. Demand side, manufacturing demand in December remained resilient. Today's national social inventory data showed a continued decline, although the rate of decline slightly narrowed, there is no risk of a widespread inventory buildup. Overall, there are no significant drivers in the fundamentals. According to the market rumors about today's Central Economic Work Conference, there were no more unexpected statements. In the short term, the market is expected to enter a macro vacuum period. On the basis of no risk in the fundamentals, the HC2505 contract is expected to continue fluctuating rangebound.