HRC Futures Fluctuated Downward

Today's HRC futures fluctuated downward, closing at 3,786 yuan/mt in the afternoon, a decrease of 1.38%. In terms of the spot market, the wait-and-see mood of the terminal was heavy today, and the transaction was average. This week, Shanghai, Lecong, Zhangjiagang, Tangshan and other mainstream HRC consumer cities all experienced different degrees of accumulated inventory, and the downstream terminal demand appeared low. Looking at the follow-up, on the supply side, the impact of maintenance on HRC production next week will continue to decrease, and there will be still an increase in HRC supply. On the demand side, downstream terminals had low purchasing desires, and generally purchase aimed to meet rigid demand. Under this circumstance, it is difficult to have a significant increase in the demand for replenishment before and after the festival. Therefore, although the HRC cost side and coke had a certain increase expectation, buyers took a prudent approach, increasing pressure on the supply side. It is expected that the short-term HRC price will still fluctuate weakly.