SMM Steel Morning Meeting: HRC Prices Dip Slightly, Market Transactions Mixed Amid Expected December Output Rise

SMM Steel Morning Meeting Summary: HRC Prices Slightly Decline, Spot Market Transactions Diverge

Yesterday, HRC futures prices fluctuated downward, with the most-traded contract closing at 3,525, down 0.23% MoM. During the day, coking coal futures weakened significantly. In the spot market, prices in many regions saw a slight correction, with overall transaction performance diverging. Some traders were reluctant to sell, while end-use demand and purchases by traders were robust in some markets. In the short term, the current profit margins for HRC and rebar are diverging, coupled with moderate order intake by steel mills, leading to an expected slight increase in HRC production schedule for December. On the demand side, end-use demand remains resilient, with short-term inventory continuing to deplete, resulting in relatively small fundamental imbalances. Attention should be paid to key macroeconomic meeting developments. It is expected that HRC prices will fluctuate upward before mid-December, with strong support below.