Policy Lag May Dampen Northern Hot-Rolled Steel Coil Destocking Momentum Next Week

【Policy Implementation Takes Time; De-stocking Speed in Northern Market May Slow Down Next Week】

Looking ahead, the hot-rolled coil profits of steel plants are still hovering around the breakeven point this week, and the enthusiasm for production remains. According to SMM research, the impact of hot rolling maintenance next week will be 190,800 tonnes, a decrease of 25,600 tonnes compared to this week, further increasing the supply pressure on hot-rolled coils. However, the implementation of previously announced policies takes time, and it is difficult for short-term downstream orders to see significant increments. The fundamentals of supply and demand are unlikely to maintain the current status quo. As a result, the de-stocking speed of hot-rolled coils in the northern market may slow down next week...