SMM HRC Daily: Weak Futures Trend, Stabilization in Sight?

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

HRC futures market continued to show a weak trend today, with the most-traded contract closing at 3,348, down 0.75%. Supply side, the impact from maintenance on HRC this week was 155,900 mt, down 36,800 mt WoW. The impact from maintenance next week is expected to be 149,700 mt, down 0.62 WoW, leading to a slight rebound in supply pressure. Demand side, futures continued to decline today, and spot trading sentiment weakened, with daily transactions also weakening. Raw material side, according to the SMM survey, the daily average pig iron increased by 19,000 mt this week, and the resumption of production is expected to continue, potentially strengthening cost support. Overall, bearish sentiment has been somewhat digested, and it is likely that inventory in major cities for HRC will continue to decrease. It is expected that the most-traded HRC contract may stabilize at a low level in the short term, with previous lows still providing support.