SMM HRC Daily: Fundamentals Improve, But Prices Fluctuate Rangebound

[SMM HRC Daily Review: HRC Fundamentals Improve, Short-term Fluctuation Rangebound]​​

Today, HRC futures fluctuated rangebound with a slight strengthening. The most-traded contract 2501 closed at 3,497 yuan/mt, up by 0.37%. In the spot market, prices increased by 0-20 yuan/mt. In terms of supply, some hot-rolled production resumed this week after maintenance, increasing supply by 35,400 mt, but overall resistance remains low. Demand side, downstream manufacturing procurement remains resilient, with some markets experiencing a shortage of certain specifications, and traders showing a clear sentiment to stand firm on quotes. Raw material side, short-term cost support remains neutral. Overall, this week’s HRC social inventory continued to decline, though at a slower pace. Short-term fundamental contradictions remain insignificant, and the inventory decline is expected to continue. The macro front remains in a vacuum period, and without further favourable macro policies, a trend of significant price increase is unlikely. It is expected that the HC2501 contract will fluctuate rangebound in the short term.