[SMM HRC Daily Review] Futures Remain Weak, Spot Transactions Show Some Improvement

HRC futures market continued to fluctuate downward today, with the most-traded contract closing at 3,370, down 0.89%. Supply side, this week's impact from HRC maintenance was 155,900 mt, down 36,800 mt WoW. Next week's impact from HRC maintenance is expected to be 149,700 mt, down 0.62 WoW, with supply pressure slightly rebounding. Demand side, as futures prices continued to decline, just-in-time procurement began at lower prices, and the trading atmosphere improved compared to yesterday. Raw material side, according to the SMM survey, pig iron output is expected to continue rebounding, and there is still a possibility of the twelfth round of coke price cuts, which could create room for iron ore. Overall, with the specific details of crude steel production reduction policies yet to be announced, the macro front lacks strong drivers, market sentiment has cooled, and bearish sentiment has returned. It is expected that the most-traded HRC contract will continue to fluctuate downward in the short term, but prior support levels are likely to hold as long as the supply-demand pattern does not deteriorate.