HRC Futures Fluctuate Slightly Amid Stable Spot Market and Fundamental Risks

Today, the most-traded HRC futures contract fluctuated rangebound, closing at 3,424 with a slight increase of 0.03%. On the spot side, mainstream market quotations mostly remained stable, with overall transactions at a moderate level. In terms of news, SMM's weekly HRC balance data was released today. This week, affected by maintenance at some steel mills, HRC production decreased MoM, while total inventory continued to see a slight reduction, with overall fundamental risks remaining low.

In the short term, raw material restocking expectations ahead of the holiday persist, and HRC inventory remains at a medium level compared to the same period in previous years, with industrial risks temporarily low. Considering that the macro stimulus policy window has not yet opened, short-term HRC prices are still expected to fluctuate. Attention should be paid to the pace and extent of inventory buildup before the holiday, as well as the potential impacts related to the US presidential inauguration in January.