SMM HRC Daily Review: Upward Momentum Yet to Emerge, Futures Likely to Remain in the Doldrums

SMM HRC Daily Review: Upward Momentum Yet to Emerge, HRC Futures Likely to Remain in the Doldrums. Today, HRC futures prices were in the doldrums, with the most-traded contract closing at 3,181, down 0.66% for the day. This week, HRC futures prices fluctuated downward, with a weekly fluctuation range of around 100 points. On the fundamental side, some steel mills shifted pig iron production, leading to a slight decline in HRC production. With weak supply, the destocking of social inventory expanded, but most traders actively destocked with low purchase intentions, resulting in an accumulation of in-plant inventory. Under these combined effects, total inventory stood at 5.0937 million mt, down 161,800 mt MoM. Looking ahead, steel mills remain highly motivated to produce, with few new maintenance plans, and supply pressure is expected to continue rebounding. However, both domestic and external demand in April are expected to maintain resilience, and inventory is likely to continue destocking next week. According to the SMM survey, pig iron production is expected to continue rebounding, but with narrowing profits and increased new maintenance, cost support is somewhat shaky. Overall, HRC is expected to maintain seasonal destocking in the short term, with significant overseas macro disturbances. Before domestic macro policies are introduced, fundamental destocking may only provide support, with upward momentum appearing weak. The HC2510 contract is expected to remain in the doldrums within the range of 3,130-3,250 next week.