SMM Forecast on HRC Prices

SHANGHAI, May 23 (SMM) - HRC futures closed down by 0.9% at 3,651 yuan/mt today. Spot quotes dipped 10-30 yuan/mt across mainstream Chinese markets, and the transactions were average. On the supply side, according to SMM statistics, this week (May 20 to May 26), the output loss affected by blast furnace maintenance is expected to be 896,100 mt, a decrease of 29,800 mt from the previous week. And the output loss of hot-rolled coils is estimated at 92,700 mt, down 73,500 mt. The demand has not changed significantly in recent days. The buyers restocked spots mainly on rigid demand. Profits of steel mills rallied, thus the steel output decline slowed down, which suppressed the rebound of hot-rolled coil prices. SMM presumes that the HRC prices will move rangebound within a wide range in the near term.