SMM HRC Daily: Futures Rebound, Spot Prices Up Slightly; Inventory Accumulates

[SMM HRC Daily Review: HRC Futures Rebound, Spot Transactions Moderate During the Day]

The futures market fluctuated upward today, with the most-traded contract closing at 3,415 yuan/mt. Market trading sentiment was moderate, and HRC spot transactions were average, with spot prices in most major cities slightly increasing by 10 yuan/mt.

On the news front, in 2024, the "program of large-scale equipment upgrades and consumer goods trade-ins" is expected to drive durable goods sales to exceed 1.3 trillion yuan. Inventory data from multiple regions were released during the day: Shanghai's inventory rose by 40,700 mt WoW (+11.66%), while Lecong's inventory increased by 101,900 mt WoW (+10.38%). HRC inventory is expected to continue accumulating significantly this week.

Demand side, downstream enterprises currently have low operating rates, and substantial procurement demand in the market remains weak, with most expectations placed after the Lantern Festival. Overall, HRC prices are expected to fluctuate rangebound in the short term.