Hot-Rolled Coil in Northern Cities Poised for Good De-Stocking Pace Ahead of Mid-Autumn Festival, Amid Interest Rate Cut Prospects

[Stimulated by pre-holiday replenishment demand, hot-rolled coil in northern cities may maintain a good de-stocking pace]

Looking ahead, the upcoming Mid-Autumn Festival holiday is expected to continue stimulating some replenishment demand, thereby alleviating the contradiction in the fundamentals of hot-rolled coil. Coupled with the imminent interest rate cut by the Federal Reserve, the main contract for hot-rolled coil may also be poised for an increase, which is conducive to speculative demand. As a result, hot-rolled coil may continue to maintain a good de-stocking pace. However, the recent rise in hot-rolled coil prices has improved profit margins, and there are expectations of a recovery in production. Unless domestic demand recovery can offset supply, there is still a risk of inventory accumulation for hot-rolled coil in northern cities...