SMM HRC Daily: Futures Decline Amid Weakening Upward Momentum

Published: May 20, 2025 17:34

Save

[SMM HRC Daily Review] Upward Drivers Weaken, HRC Futures in the Doldrums

Today, the most-traded HRC futures contract first rose and then fell, closing at 3202, down 0.38%. In the spot market, quotes were mostly in the doldrums during the day, with overall trading performance being average. In terms of supply, the impact from maintenance on hot-rolled production this week was 274,200 mt, up 63,200 mt WoW. The short-term supply pressure is expected to continue to ease. In terms of demand, end-use demand remains resilient in the short term, with inventories in Zhangjiagang and Shenyang continuing to decline. On the cost side, pig iron output is expected to decrease but will remain at a high level, with cost support remaining intact for now. 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 increase in subsequent demand. In the short term, the most-traded HRC futures contract may fluctuate rangebound at its current level, and it is recommended to go short on rallies.

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

22 hours ago

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.

22 hours ago

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.

22 hours ago

23 hours ago

[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...

23 hours ago