Today, HRC futures first declined and then rose, with the most-traded contract closing at 3456, up 0.34%. In the spot market, domestic quotes rose towards the end of the trading day. In terms of supply, SMM production increased by 11,600 mt MoM this week, and the supply pressure for HRC remained at a moderate level. Demand side, with the current price increase, speculative and arbitrage demand was robust, and the overall trading atmosphere was good. However, most of the transactions involved the transfer of ownership of goods, with terminal purchases mainly on a need-based basis and not effectively stimulated. Cost side, the sustained high level of hot metal provided support for ore prices, and the third and fourth rounds of coke price increases were poised to occur, with overall cost support remaining strong. Looking ahead, the characteristics of the off-season for terminals have become prominent. This week, SMM's total HRC inventory has accumulated, increasing by 75,700 mt MoM, but it is not expected to drag down the market trend for the time being. SMM predicts that before the macro narrative is disproven, the short-term most-traded HRC futures contract will continue to fluctuate at highs mainly driven by sentiment, but the inventory buildup pattern may limit its upward trend.