[SMM HRC Daily Review] Futures Market Continues to Decline, How Long Will It Take to Digest Trade Frictions?

Published: Feb 24, 2025 17:50

Save

Today, HRC futures fluctuated downward, extending Friday's decline, closing at 3,431 with a drop of 1.24%. Supply side, new maintenance plans for HRC rolling lines are scheduled this week, slightly easing supply pressure, though it remains at a high level. Demand side, manufacturing end-use demand continues to recover steadily. Looking ahead, the fundamentals of HRC are characterized by a strong supply and demand pattern, with HRC inventory buildup outperforming seasonal trends. Domestically, the macro Two Sessions are approaching, and market expectations have not yet been disappointed, with market demand gradually recovering. The biggest imbalance currently lies in overseas trade frictions, as Vietnam and South Korea impose tariffs on China's sheet & plate products. In the short term, sentiment still needs to be resolved, and prices may see slight downward adjustments. However, in the medium and long-term, China's sheet & plate products, whether through price advantages or transshipment via other countries, will not see export volumes completely disappear. The market awaits sentiment stabilization and speculative activity around the upcoming meetings.

Today, HRC futures fluctuated downward, extending Friday's decline, and closed at 3,431, down 1.24%. Supply side, new maintenance plans for HRC rolling lines are scheduled this week, slightly easing supply pressure, though it remains at a high level. Demand side, manufacturing end-use demand continues to recover steadily. Looking ahead, the fundamentals of HRC remain in a strong supply and demand pattern, with HRC inventory buildup outperforming seasonal trends. Domestically, as the Two Sessions approach, market expectations have not yet been disappointed, and market demand is gradually recovering. Currently, the biggest imbalance lies in overseas trade frictions, with Vietnam and South Korea imposing tariffs on China's sheet & plate products. In the short term, sentiment still needs to stabilize, and prices may see slight downward adjustments. However, in the medium and long-term, China's sheet & plate products, whether through price advantages or transshipment via other countries, will not see export volumes completely disappear. The market awaits sentiment stabilization and speculative activity around the upcoming meetings.

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.

For any inquiries or to learn more information, please contact: lemonzhao@smm.cn

For more information on how to access our research reports, please contact:service.en@smm.cn

Related News

Feb 6, 2026 18:30

Before the holiday, the black chain is unlikely to see a trend-driven market [SMM Steel Industry Chain Weekly Report].

This week, ferrous metals were in the doldrums, with coking coal and coke staging a mid-week rise. At the beginning of the week, financial markets experienced sharp fluctuations, dragging down sentiment in the ferrous chain and leading to a pullback in futures. Mid-week, Indonesia's cut to coke production quotas drove coking coal and coke futures to lead the gains, though the impact was more pronounced on thermal coal, while coking coal's rise was largely sentiment-driven and short-lived. In the latter part of the week, finished products continued their seasonal inventory buildup, and support from the raw material side weakened, causing the entire ferrous chain to pull back. In the spot market, with the Chinese New Year holiday approaching, purchasing activity slowed down further, with end-users only making limited, as-needed purchases at low prices.

Feb 6, 2026 18:30

Feb 6, 2026 18:09

MMi Daily Iron Ore Report (February 6)

Today, the DCE iron ore futures continued to hit bottom today, with the most-traded contract I2605 closing at 760.5 yuan/mt, down 1.23% from the previous trading day. Spot prices fell by 5–10 yuan/mt compared to the previous trading day.

Feb 6, 2026 18:09

Feb 6, 2026 17:41

[SMM Chromium Daily Review] Inquiries and Transactions Weakened, Chromium Market Showed Mediocre Performance Before the Holiday

[SMM Chrome Daily Review: Trading and Inquiries Weakened, Chrome Market Showed Mediocre Performance Before the Holiday] February 6, 2026: Today, the ex-factory price of high-carbon ferrochrome in Inner Mongolia was 8,500-8,600 yuan/mt (50% metal content), flat MoM from the previous trading day...

Feb 6, 2026 17:41