SMM Daily Comment On Domestic HRC Market (Sep 26)

Published: Sep 27, 2023 16:21

Source: SMM

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HRC futures closed at 3759 yuan/mt yesterday, a decrease of 1.98%. In terms of spot markets, HRC quotations in mainstream areas dropped by 10-40 yuan/mt.

SHANGHAI, Sep 27 (SMM) – HRC futures closed at 3759 yuan/mt yesterday, a decrease of 1.98%. In terms of spot markets, HRC quotations in mainstream areas dropped by 10-40 yuan/mt. According to SMM statistics, the production reduction of pig iron caused by blast furnace maintenance this week was 762,200 mt, a decrease of 75,900 mt WoW. HRC maintenance cut output by 67,200 mt, down 34,700 mt from last week, and that of next week is estimated to be 9,600 mt, a weekly drop of 57,600 mt. In the short term, supply will continue to exceed demand. Despite the lower prices, terminal procurement enthusiasm was average and procurement was mainly based on demand, while pre-holiday replenishment came to an end. The high probability of a second round of coke price hike will offer solid cost support. However, market sentiment subsided due to rumors that a large amount of Mongolian coal would flood into China. HRC prices are expected to be volatile and weak in the short term. It’s advisable to monitor demand recovery and inventory accumulation risk.

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