Losses-Driven HRC Production Cutbacks Loom Large, Eyes On Impact Of Macro Policy

Published: Oct 19, 2023 15:03

Source: SMM

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According to SMM, HRC futures fluctuated downward yesterday and closed at 3747 yuan/mt, down 0.74%.

SHANGHAI, Oct 19(SMM) – According to SMM, HRC futures fluctuated downward yesterday and closed at 3747 yuan/mt, down 0.74%. In terms of spot prices, HRC quotations in mainstream areas across China fell by 10-30 yuan/mt this week. According to SMM research, on October 18, the blast furnace operating rate calculated by SMM was 91.38%, a decrease of 0.15% from last week. The average daily pig iron production of sample steel plants was 2.2053 million mt, down 2,600 mt WoW, which eased supply pressure. Since macroeconomic data plunged, and futures prices were raised, terminals turned to cautious wait-and-see, and the overall transaction weakened significantly. Overall, the cost increase reached a bottleneck and its support loosened. Demand picked up slightly but is unlikely to grow significantly. The subsequent factor driving HRC upward may be the reduction in supply. It is expected that HRC prices will remain under upward pressure in the short term, and attention needs to be paid to proactive production reduction and policy effect.

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