HRC Futures Stabilize, Fundamentals Show No Imbalance Despite Tariff Suspension

【SMM HRC Daily Review】Imbalance Eased? How Much Upside Room for HRC Futures?

HRC futures initially rose and then stabilized today, with the most-traded contract closing at 3,255, up 2%. Spot market transactions weakened again. In terms of supply, the impact of steel mill maintenance significantly decreased, with HRC supply increasing by 73,600 mt, and HRC supply continued to rebound. On the 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-wise, the US announced today a tariff suspension for 75 countries excluding China, leading to an upward correction in both domestic and foreign capital markets. Overall, the current HRC fundamentals show no imbalance, but the pace of inventory reduction has slowed. Although overseas tariff risks have eased, the US-China imbalance persists and is unlikely to see substantial progress in the short term. HRC prices may fluctuate rangebound.