SMM Daily Comment On Domestic HRC Market (Sep 22)

SHANGHAI, Sep 25 (SMM) – Last Friday, HRC futures rebounded after a low opening and closed at 3863 yuan/mt, down 0.36%. Last week, spot quotations in mainstream markets fluctuated downwards. HRC output rebounded slightly, and spot transactions were acceptable at first then cooled down with price decline. Pre-holiday replenishment was less than expected, and the overall inventory accumulation was relatively large, deepening the imbalance between supply and demand. In the follow-up, although the high cost of charge will compress the profits of steel mills, HRC output may still maintain a high level. Pre-holiday replenishment is coming to an end, and cost support remains firm. HRC inventories face accumulation risk and its prices are expected to run volatile and weak. This week, the HRC 2401 contract may fluctuate in 3750-3970 yuan/mt, with a change range of (-100,+100) yuan/mt.