SMM daily review and forecast for HRC Market

HRC futures moved upwards today, closing up 1.41% at 3,887 yuan/mt. In the spot market, the mainstream offers for HRC in China rose by 20-40 yuan/mt. The overall transaction appeared active. This week, with prolonged maintenance of some steel mills in the northern China, HRC production swung narrowly. Scheduled maintenance of a few steel mills to be issued in late July will probably leave HRC market with little supply pressure. Terminal demand was moderate. The overall HRC inventory will keep shrinking. In terms of regions, except for the East China, HRC inventories in other regions dwindled lower, most notably in North China and northeast China. On the raw material side, bolstered by some cost support, little supply pressure and favorable policies, HRC market may fluctuate on a fullish note in a short term.