[SMM Sheets & Plates Daily Review] Rising Inventory Buildup Expectations Keep Sheets & Plates Under Pressure

The most-traded HRC contract closed at 3,338 today, down 0.39% for the day. In the spot market, prices of cold-rolled and hot-rolled products fell by 10 yuan/mt, with overall moderate trading. In terms of supply, according to SMM statistics, the impact from HRC maintenance this week is expected to remain unchanged, and HRC supply is expected to be flat WoW. In terms of demand, the Dragon Boat Festival holiday ended, but the market saw limited restocking demand. Affected by the deepening off-season and rainy weather, overall demand showed no significant improvement. Cost side, the eighth coke price increase was implemented today, but iron ore demand and prices remained weak, resulting in only moderate cost support overall. Looking ahead, demand is showing a seasonal weakening trend, and the recent frequent rainy weather has lengthened procurement logistics lead times. Expectations for a significant release of demand are low. Inventory is expected to shift to a buildup, fundamental pressures are emerging, and short-term prices remain under downward pressure. However, given that the cost side, particularly coke, still provides some support, prices are unlikely to fall sharply. Short-term sheets & plates prices are expected to remain in the doldrums.