[SMM Sheets & Plates Daily Review] Sheets & Plates Return to Fundamentals, Prices to Move Sideways in the Short Term

HRC futures the most-traded contract closed at 3,366, down 1.78%. Spot market, hot-rolled coil prices in most major cities fell 30-50 yuan/mt, cold galvanized prices dropped 10 yuan/mt, and overall transactions were weak.
Supply side, the impact from maintenance on hot-rolled production this week was 185,500 mt, up 48,000 mt WoW, indicating reduced HRC supply this week based on maintenance schedules. Demand side, yesterday coking coal and coke futures strengthened, driving HRC futures and spot prices higher. Today, futures market sentiment cooled, and HRC futures weakened significantly, dragging spot prices down again. Prices fluctuated sharply over the past two days, and with mediocre off-season demand, end-user procurement remained cautious, with overall transactions weak today.
Overall, off-season sentiment was strong, demand remained generally weak, and upward momentum was insufficient. However, considering the rebound in hot metal production, strong sentiment for coking coal and coke price increases, cost side still had support, and steel mills had a strong willingness to hold prices firm, prices still had downside support. Going forward, the supply-demand imbalance was not prominent. As news related to the mine accident gradually subsided, market prices were likely to return to fundamentals-driven logic, with prices expected to mainly move sideways in the short term.