SMM HRC Daily: Futures Rebound, Inventory Declines, Outlook Stabilizes

[SMM HRC Daily Review] Inventory Continues to Decline Futures May Continue to Stabilize and Operate

HRC futures rebounded from a low today, with the most-traded contract closing at 3,357, up 0.11%. Supply side, HRC production decreased by 59,800 mt this week, remaining at a relatively low level. Demand side, the market sentiment improved in the morning session as futures rebounded, and end-users made more purchases. Raw material side, according to the SMM survey, daily average pig iron production increased by 19,000 mt this week, and the resumption of production is expected to continue, potentially strengthening cost support. Overall, bearish sentiment has somewhat dissipated, and total HRC inventory continued to decline this week, indicating a healthy fundamental state. It is expected that the most-traded HRC futures contract will continue to fluctuate in the short term.