HRC Futures Surge Amid Maintenance, Recovery in Demand, and Potential Production Cut Rumors

HRC futures surged strongly today, closing at 3,432, up 1.17%.

Supply side, this week's impact from HRC maintenance reached 129,500 mt, up 94,500 mt WoW. Next week's impact from HRC maintenance is expected to reach 167,100 mt, up 3.76 WoW, slightly easing supply pressure.

Demand side, end-use demand in the manufacturing sector remains in a continuous recovery, with intraday transactions significantly boosted by the futures market's rally.

Looking ahead, today's market rumors of a potential reduction in crude steel production drove a notable rally in the futures market. Although the news remains unconfirmed, it has warmed market sentiment. Additionally, the anti-dumping sentiment regarding Vietnam has somewhat subsided, and with the domestic macro Two Sessions approaching, policy expectations have not yet been disappointed. The most-traded contract is expected to continue a slight upward fluctuation in the short term.