[SMM HRC Daily Review] Optimism Fades, Short-Term Upside Potential for HRC Futures Contracts Diminishes Today, the most-traded HRC futures contract oscillated downward, closing at 3,207 yuan/mt, down 1.02%. In the spot market, intraday quotes fell by 10-20 yuan/mt, with overall trading performance remaining weak. In terms of supply, the impact from maintenance on hot-rolled coil production this week was 226,200 mt, up 15,200 mt WoW. Short-term supply pressure is expected to continue easing. In terms of demand, end-use demand remains resilient in the short term, and overall inventory levels may continue to destock. On the cost side, iron ore prices are still expected to remain strong, while coke prices have started to decline, providing temporary stability to HRC cost support. On the macro front, real estate data for April remained sluggish, with significant YoY declines in steel-related investment and new construction starts. In summary, the fundamental imbalance in the HRC market is not yet apparent. The optimism brought about by the earlier suspension of tariffs has faded somewhat, and uncertainties remain regarding the incremental demand in the future. In the short term, the most-traded HRC futures contract may fluctuate rangebound at current levels.