SMM HRC Daily: Futures Rebound Amid Improved Sentiment Despite Initial Decline

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

HRC futures initially declined but rebounded in the afternoon, partially recovering earlier 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, affected by tariffs, demand is mainly driven by rigid needs. 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, the fundamentals of HRC can still maintain seasonal inventory reduction. The short-term focus remains on macro direction, and HRC prices are expected to stabilize in the near term.