HRC Prices See Initial Rise Followed by Decline, Market Sentiment Weakens Amid Low Trading Activity

[SMM Daily HRC Trading] On April 15, the combined daily HRC trading volume of SMM's sample enterprises across four cities (Shanghai, Lecong, Tianjin, and Ningbo) totaled 16,200 mt, up 810 mt DoD (+5.3%), up 46.74% YoY (solar calendar), and up 19.21% YoY (lunar calendar).

Raw material prices strengthened today, driving finished steel prices to edge up. The most-traded hot-rolled coil contract closed at 3,290 at the end of the session, up 0.34%. Spot market side, quoted prices in multiple regions edged up accordingly. Cold-rolled side, cold-rolled prices mostly held steady today, with no obvious follow-up gains yet. Going forward, short-term bearish factors on the ore side have been fully priced in, and coking coal and coke prices trended stronger, providing relatively strong cost support in the near term. Hot-rolled coil fundamentals side, inventory drawdowns this week were expected to accelerate WoW, with limited accumulation of supply-demand imbalance. The most-traded hot-rolled coil contract was expected to move sideways in the short term.

[SMM Coking Coal and Coke Daily Brief] Supply side, market sentiment improved recently, and coke enterprises actively increased shipments, leading to a continued decline in coke enterprise coke inventory. Demand side, steel mills currently maintained high production enthusiasm, with daily average hot metal production continuing to increase, sustaining rigid demand for coke. However, steel mill profits were moderate recently, leading to poor acceptance of coke price hikes. Most steel mills purchased coke as needed, lacking willingness to restock. In summary, coke and steel enterprises will continue to negotiate, and the coke market may remain stable in the short term.