Publicado: Aug 1, 2024 17:45
[SMM Daily Comment on Hot-Rolled Coil: Supply Declines, Demand Rises, yet Trading Weakens Intra-day?] Today's hot-rolled coil futures market saw an initial rise followed by a decline, closing at 3505 in the afternoon, up 0.78%. The futures market fluctuated, with trading sentiment remaining moderate to low. Downstream buyers adopted a wait-and-see approach again, resulting in generally weaker overall intra-day trading in most major hot-rolled coil markets. According to SMM research, this week, steel mills in East China and South China resumed production after maintenance, while new maintenance was implemented at mills in Southwest China. Steel mills in North China postponed their resumption of production. Collectively, these factors led to a slight decrease in hot-rolled coil production on a month-on-month basis. Moreover, apparent demand rebounded significantly month-on-month. However, inventories still accumulated, albeit at a narrower range. Some steel mills have proactively reduced production, leading to marginal improvements in the fundamentals of supply and demand. Coupled with the generally positive macro sentiment, it is comprehensively estimated that hot-rolled coil prices will fluctuate in the short term with limited downside potential.

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