SMM HRC Daily Review: Market Sentiment Weakens, Prices Volatile with Average Transactions

[SMM HRC Daily Review: Market Sentiment Weakens, Average Transactions During the Day]

HRC futures market continued to rise today, but the increase narrowed, closing at 3,417 yuan/mt in the afternoon, up 0.92%. In the spot market, mainstream city quotes were slightly raised by 10 yuan/mt, with price fluctuations slowing down. End-users resumed a wait-and-see sentiment, leading to average transactions during the day.

Fundamentally, HRC production rebounded significantly this week, with increased supply. Meanwhile, after macro sentiment cooled, downstream consumption continued to face seasonal weakening. However, benefiting from sustained export strength, domestic demand softened slightly, but exports remained resilient.

Additionally, based on the social inventory data released during the day, inventories in Shanghai and Zhangjiagang saw slight declines, while Tangshan and Lecong continued their pre-holiday inventory buildup trend.

In summary, the recent price rally has largely reflected pre-holiday demand. In the short term, HRC prices are expected to remain volatile, with insufficient upward momentum for further significant increases.