SMM HRC Daily: Futures Rebound, Sentiment Improves Despite Initial Decline and Tariff Escalation

【SMM HRC Daily Review】Market Sentiment Improved, HRC Futures Rebound After Initial Decline

HRC futures initially declined but rebounded in the afternoon, partially recovering losses. The most-traded contract closed at 3,208, down 1.11%. Spot market transactions improved significantly. Supply side, according to the latest SMM tracking, 39 mainstream steel mills planned a total HRC commodity material production of 13.96 million mt in April, with a daily average production increase of 5.6%, indicating a continued rebound in HRC supply. Demand side, manufacturing demand in April may remain resilient, but in the short term, demand is mainly driven by rigid needs due to tariff impacts. Macro side, the US imposed a 104% tariff on China today, further escalating trade conflicts. However, domestic capital markets actively supported the market, and sentiment improved, with both the stock market and futures effectively rebounding in the afternoon. Currently, HRC fundamentals can still maintain seasonal destocking, and the short-term focus remains on macro direction. HRC prices are expected to stabilize in the near term.