SMM Daily Comment On HRC Market (Sep 21)

SHANGHAI, Sep 22 (SMM) – Yesterday, HRC futures fell back after a high opening and closed at 3843 yuan/mt, down 2.26%. This week, HRC output increased slightly, while steel mills’ profits were squeezed by high raw material costs. The short-term supply may remain high. Although the National Day holiday is approaching, the terminal market still does not experience the expected large-scale replenishment. In terms of raw materials, coke prices showed an upward trend, and iron ore remained stable. The stock replenishment of charges before the holiday basically ended, and the price hikes were mute. However, HRC is difficult to decline for cost support, and the transaction effect during the peak season failed to effect due to weak demand. In the short term, HRC prices are anticipated to oscillate.