【SMM hot roll daily review: production restrictions rumors disrupt the

Published: Jun 6, 2024 18:05

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【SMM hot roll daily review: production restrictions rumors disrupt the market, can the price of hot rolls continue to rise?】Today, the futures market of hot rolls was stimulated by the news of production restrictions, and showed a strong upward trend in the afternoon. As of the close of the afternoon, the price was 3828, with a gain of 1.06%. In the spot market, the mainstream city quotes tended to be stable with a slight increase, with a gain of 10-20, and the transaction was good. According to SMM's statistics this week, the social inventory of hot rolls in 86 warehouses (large sample) nationwide was 3.8792 million tons, a decrease of 6,300 tons or 0.16% from the previous week, and an increase of 19.84% year on year. From a regional perspective, except for the decrease in inventory in the East China and South China markets, the Central China, North China, and Northeast China all showed an increase in inventory. In terms of supply, the current enthusiasm of steel mills to produce hot rolls is still acceptable, and it is expected that short-term production will remain at a high level of fluctuation. In terms of demand, the weekly demand data rose slightly, and downstream demand will continue to be supported in the short term. On balance, the good news is expected to narrow the upside potential of hot roll prices in the short term, and attention should be paid to the implementation of subsequent steel mill production restrictions.

Data Source Statement: Except for publicly available information, all other data are processed by SMM based on publicly available information, market communication, and relying on SMM's internal database model. They are for reference only and do not constitute decision-making recommendations.

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