[SMM Sheets & Plates Daily Review] Short-Term Sheets & Plates Continue Fluctuating Trend
Today, the most-traded HRC contract fluctuated lower, closing at 3,373, down 0.15% from the previous trading day. In terms of supply, mill maintenance further decreased WoW this week. According to SMM survey, after the SMM sample expansion this month, the planned hot-rolled commercial material volume of 54 steel mills totaled 17.538 million mt, up 1.0% MoM from actual production last month, with daily average production rising 4.4% MoM. Supply pressure increased further this month. On the demand side, demand was moderate today. As futures trended lower, end-users mainly purchased as needed, and there were shipments in the spot-futures price spread. On the cost side, the sixth round of coke price increases is about to be implemented, with a probability of further hikes thereafter. However, support from the iron ore side is weakening, and the unilateral cost support provided by coking coal and coke offers limited driving force. Overall, HRC's own drivers are weakening in the short term. Before cost support collapses, HRC will remain moving sideways in the near term.