[SMM Steel Sheets & Plates Daily Review] Costs Eased Somewhat; HRC Prices Expected to Consolidate Next Week

Published: Oct 16, 2026 17:17 (GMT+8)

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HRC prices consolidated on a subdued note this week, with the spot market showing a similar trend. Mainstream quotations moved sideways within a range of 10-30 yuan/mt during the week. Overall trading sentiment was weak, with downstream buyers purchasing as needed and showing little interest in speculative locking. From a fundamental perspective, supply side, the impact from hot rolling maintenance this week was 193,800 mt, up 53,400 mt WoW. However, the impact from maintenance is expected to pull back to 144,900 mt next week, and the pressure from rebounding production still warrants attention. Demand side, downstream buyers mainly restocked on a need-to basis after the holiday. The automobile and home appliance sectors remained weak overall, while the machinery sector provided modest support. Apparent demand for HRC rebounded by 356,300 mt WoW this week, largely offsetting the previous decline of 336,400 mt, marking the first notable positive feedback after the holiday. However, the transmission of demand into physical workloads remains slow, and end-users showed low acceptance of high-priced resources. Cost side, most steel mills remained in a loss-making state, and both lower costs and expectations for production cuts jointly limited the room for a deep decline. In summary, the supply-demand imbalance in HRC fundamentals eased marginally, but high inventory and loosening cost support continued to weigh on prices. The most-traded contract is expected to trade within the range of 3,200-3,270 yuan/mt next week, continuing to consolidate.

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