[SMM HRC Daily Review] Fundamental Imbalance Gradually Accumulates, HRC Prices May Fluctuate Downward

【Fundamental Imbalance Gradually Accumulating, HRC Prices May Fluctuate Downward】 HRC futures market fluctuated downward today, closing at 3,419 in the afternoon. In the spot market, trading sentiment for HRC cooled, speculative demand nearly disappeared, and downstream end-users stayed on the sidelines, leading to weak HRC transactions. Regarding inventory, SMM's statistics showed that the national large-sample warehouse HRC social inventory reached 3.0186 million mt this week, up 25,900 mt (+0.87% MoM), marking the beginning of an accumulation in national HRC social inventory. On the cost side, prices of raw materials such as iron ore and coke have recently declined, weakening cost support for HRC. In summary, the US Fed's interest rate cut did not exceed market expectations, and the fundamental imbalance in HRC is gradually accumulating. In the short term, HRC prices are expected to fluctuate downward.