SMM HRC Daily: Positive Fiscal Signals Boost Sentiment, Transactions Improve

[SMM HRC Daily Review: Fiscal Meeting Sends Positive Signals, HRC Transactions Improve During the Day]

HRC futures fluctuated upward during the day, with the most-traded contract closing at 3,431, up 0.53% WoW. The futures market rebounded slightly, with moderate trading sentiment and some speculative demand emerging. Downstream end-users purchased as needed, and HRC transactions improved compared to yesterday.

On the news front, the national fiscal meeting concluded today, emphasizing the implementation of more proactive fiscal policies, which boosted market sentiment in certain areas.

Supply side, the impact from maintenance on HRC this week decreased by 64,400 mt WoW, and HRC production rebounded slightly, though overall pressure remained relatively small.

Demand side, the production and sales of the automotive and home appliance manufacturing sectors have been growing steadily, with home appliance export data also rising rapidly. The previously emphasized "program of large-scale equipment upgrades and consumer goods trade-ins" continues to support downstream demand for HRC.

In summary, fundamental imbalances are not yet prominent, and HRC prices are expected to remain in a sideways movement.