[SMM HRC Daily Review] HRC futures were in the doldrums, with poor trading volume in the spot market during the day.

Published: Aug 8, 2025 17:00

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Today, HRC prices were in the doldrums, with the most-traded contract closing at 3,428, down 0.55%. This week, the HRC market first rose and then fell, with overall trading volume showing relatively small changes compared to last week. On the macro news front, seven departments are promoting the industry to accelerate towards the high-end and mid-end, preventing "rat race" competition. There are also rumors circulating in the market, such as strict implementation of production restrictions starting from August 15, with blast furnaces and sintering plants each reducing production by 30%; blast furnaces to be completely shut down for four days starting from September 1; steel mills in Anhui Province to limit production by 15%-20%; and coal mines in Shanxi, Shaanxi, Shandong, and north-east China to fully implement a 276-day production schedule. These rumors have heightened market expectations for a reduction in supply. Looking ahead, there are expectations for a sixth round of coke price increases and coke prices are expected to fluctuate rangebound, which will strengthen cost support. However, the off-season is suppressing HRC demand, limiting the upside potential for HRC prices. Next week, the most-traded HRC contract is expected to trade within the range of 3,350-3,530. Subsequent attention should be paid to the implementation of production restrictions and output reductions by steel mills.

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