SMM HRC Daily: Futures Retreat After Peak, Short-Term Doldrums Forecasted

Published: Jun 12, 2025 17:58

Save

[SMM HRC Daily Review] HRC Futures Pull Back After Hitting Peak, Likely to Remain in the Doldrums in the Short Term
Today, the most-traded HRC futures contract pulled back after hitting a peak, with the 2510 contract closing at 3080 in the afternoon session, down 0.87% MoM. Spot prices fell by 10-30 yuan/mt. In terms of supply, HRC production increased by 77,100 mt this week, with supply pressure rebounding rapidly. On the demand side, seasonal demand characteristics have emerged, with purchasing as needed being the main trend. In terms of raw materials, pig iron output is expected to continue to decline in the short term, and there are still expectations for four rounds of coke price cuts. The cost support for HRC has slightly weakened. Overall, as mentioned yesterday, the favourable macro sentiment brought about by the China-US talks has largely dissipated, and market conditions have once again returned to the fundamental logic of the off-season. There are still expectations for an increase in HRC supply, while inventory has begun to accumulate in some markets in the north and south. It is expected that HRC prices will remain in the doldrums in the short term.

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