SMM HRC Daily: Moderate Demand, Small Supply-Demand Imbalance, Futures Range-bound

[SMM HRC Daily Review] Supply-Demand Imbalance Relatively Small, Futures Hard to Show Trending Market in Short Term

HRC prices weakened significantly this week. In the spot market, demand was moderate, with end-users mainly purchasing as needed, leading to a decreasing trend in overall transactions. Looking ahead, on the macro front, RRR cuts and interest rate cuts did not materialize this week, but there is still an expectation for them to be implemented in the long term. Internationally, the US Fed announced its March interest rate decision, maintaining the current rate and declaring a slower pace of balance sheet reduction, while also raising inflation forecasts and lowering economic projections. On the cost side, ore prices are expected to rebound slightly, and coke prices remain stable, potentially providing a small boost to HRC costs. Fundamentally, HRC supply decreased while demand increased, with end-use demand being moderate, and HRC inventories continued to decline. In summary, the fundamental situation for HRC has improved, with a relatively small supply-demand imbalance, supporting market expectations. The most-traded HRC futures contract is expected to operate within the 3320-3450 range next week.