[SMM HRC Daily Review] Moderate Supply-Demand Pattern: When Will Futures Stabilize?

Today, HRC futures continued a weak trend, with the most-traded contract closing at 3,348, down 0.75%. 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, futures prices continued to decline today, spot transaction sentiment weakened, and daily transactions turned sluggish. Raw material side, according to the SMM survey, this week's daily average pig iron output increased by 19,000 mt, with the pace of resumption expected to continue, potentially strengthening cost support. Overall, bearish sentiment has been partially digested, and the probability of continued inventory reduction in major HRC markets remains high. In the short term, the most-traded HRC contract is expected to stabilize at a low level, with previous lows likely to hold as support.