[SMM HRC Daily Review] Trading Logic Returns to Fundamentals, with the Most-Traded HRC Contract Fluctuating Rangebound Today, the most-traded HRC contract held up well, closing at 3211, up 0.16%. In the spot market, quotes remained stable during the day, with overall transaction performance improving. In terms of supply, the impact from HRC maintenance this week was 274,200 mt, up 63,200 mt WoW. Short-term supply pressure is expected to continue to slow down. In terms of demand, end-use demand remains resilient in the short term, and inventory in major cities continues 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. In summary, the imbalance in HRC fundamentals is not yet apparent. Recently, the futures market has been weak, and the release of end-use demand has shown slight signs of fatigue, with both supply and demand weakening. In the short term, the most-traded HRC contract may fluctuate rangebound at its current position, and the strategy of shorting on rallies remains unchanged.