[SMM HRC Daily Review] Futures Rose First and Then Fell, May Fluctuate Upward in the Short Term

HRC futures fluctuated downward first and then upward today, closing at 3,421 with a 0.35% increase. Supply side, some steel mills in North China underwent equipment maintenance this week, leading to a slight decline in HRC production. Demand side, manufacturing end-use demand remains in continuous recovery, with moderate steel transactions during the day and a steady release of previously suppressed demand. Looking ahead, as the domestic macro Two Sessions approach, disruptions from industrial and macro news are intensifying. This week, due to suppressed demand, HRC inventory accumulation has expanded to some extent. However, after sentiment digestion, demand is expected to provide positive feedback, and inventory reduction is within reach. Coupled with expectations not yet being unmet, the most-traded HRC futures contract is expected to continue fluctuating upward in the short term.