HRC futures and spot prices fluctuated at lows today, with the most-traded contract closing at 3,215, down 0.12%. In the spot market, mainstream market quotations showed mixed performance intraday, and overall trading activity was moderate. According to the latest SMM data, steel departures from China's main ports reached 2.9681 million mt this week, up 38% WoW. Recent renewed MD activity indicates strong overall export resilience for steel. However, HRC inventories continued to accumulate during the peak season, with current inventory levels already higher than the same period last year. Dragged down by fundamentals, the HRC-rebar price spread gradually narrowed.
In the short term, the Fourth Plenary Session of the 20th Central Committee of the Communist Party of China was held in Beijing from October 20 to 23. The session reviewed the "Proposal of the Central Committee of the Communist Party of China on Formulating the 15th Five-Year Plan for National Economic and Social Development," charting the course for China's development over the next five years, which significantly boosted macro expectations. Coupled with ongoing supply-side disruptions in coal and coke, futures showed relative strength. Supported by macro factors and costs, HRC prices fluctuated at lows in the short term. Once the conference concluded and macro sentiment cooled, market focus returned to demand. If HRC inventory trends still fall short of expectations, prices face further downside risks.