During the day, futures of multiple ferrous metals varieties were in positive territory, with the most-traded HRC contract settling at 3,302, up 0.67%. In the spot market, cold-rolled and hot-rolled prices edged up during the day, with transaction performance on the moderate side, improving MoM. On the news front, disturbance at the raw material end intensified during the day, and HRC futures strengthened in tandem.
From a fundamental perspective, the impact of steel mill maintenance increased in July, and production is expected to remain at a medium-to-low level. Against the off-season backdrop, inventory is expected to accumulate slowly in July. On other fronts, expectations for macro meetings persist in late July, and the cost side still faces periodic stimuli from raw material iron ore and coke. It is expected that in the short term, sheets & plates prices will fluctuate along with cost trends. Considering that HRC fundamentals are unlikely to provide strong price momentum, the upside room for prices from macro and periodic cost stimuli is temporarily limited. The most-traded HRC contract is focused on the 3,330-3,350 range.
![[SMM HRC Arrivals] Arrival Ratio Increased Significantly This Period](https://imgqn.smm.cn/usercenter/UqlZJ20251217171717.jpg)
![[SMM Zhangjiagang Hot-Rolled Coil Inventory] Inventory Narrowly Accumulated This Week](https://imgqn.smm.cn/usercenter/rBCZR20251217171716.jpg)
