SMM HRC Daily: Fundamentals Improve, Market Expected to Fluctuate Next Week

[SMM HRC Daily Review: Fundamentals Improve, HRC Market May Fluctuate Next Week]

Today, HRC futures fluctuated downward, with a full-day decline of 0.85%, and the most-traded contract finally closed at 3,363. This week, HRC prices fluctuated downward. In the spot market, market demand was moderate this week, with end-users primarily purchasing as needed, and overall market transactions showed no outstanding performance. Looking ahead, macro side, major meetings emphasized the need to continue promoting the transformation and upgrading of traditional industries, maintaining crude steel production control, and advancing steel industry restructuring. Cost side, iron ore prices rebounded slightly, while the eleventh round of coke price cuts is expected, leaving HRC cost support stable with a weak trend. Fundamentals, HRC supply decreased while demand increased, end-use demand was moderate, and overall HRC inventory continued to decline. In summary, HRC fundamentals have improved, and in the long term, significant reductions in steel production are expected to support market expectations. Next week, the most-traded HRC contract may fluctuate within the range of 3,330-3,530.