[SMM Sheets & Plates Daily Review] Prices held up well during the day; trading activity was moderate

Some major mills added maintenance shutdowns, and May supply pressure is lower than previous expectations. Demand side, sheets & plates demand is expected to weaken marginally in mid-to-late May. Hot-rolled coil inventory is expected to continue destocking over the next 2–3 weeks, with limited accumulation of supply-demand imbalances before month-end in May.

The energy premium outside China is unlikely to ease in the short term, hot metal production continues at elevated levels, and coil prices are expected to continue fluctuating at highs in the near term. The pullback in coking coal prices driven by expectations of easing U.S.-Iran tensions and the periodic weakening of hot-rolled coil export order-taking are expected to cause prices to come under pressure briefly, with limited downside.