"SMM Hot Coil Daily Review: Cost Support remains strong, Spot Trading Atmosphere remains favorable

Hot coil futures fluctuated upward throughout the day, recovering from yesterday's decline, and the closing price was at 4028, with a 1.28% increase. In terms of spot trading, prices in major cities rose by 10-30 yuan/ton. Today, the futures market trended upward, and the trading atmosphere in the market remained favorable, with a focus on end-user purchases. According to SMM research, on December 6, the blast furnace operating rate was 89.6%, a decrease of 1.03% compared to last week, and the average daily pig iron output of sample steel mills was 2.1578 million tons, a decrease of 30,300 tons compared to the previous period, which slightly eased the pressure on the supply side. On the raw material side, before the third round of coke price adjustments, there is no significant loosening of cost support. Overall, the current demand for hot coils remains stable, the manufacturing industry is improving, and it should not be difficult to maintain the pace of de-stocking in the short term. Currently, the main focus is on changes in raw material prices, so the hot coil prices may continue to fluctuate in the short term."