Hot-Rolled Steel Coil Transactions Soar 69.1% on RRR Cut and Mortgage Rate Relief Hopes

[SMM Daily Hot-rolled Steel Coil Transaction Volume] On September 24, the total daily transaction volume of hot-rolled steel coils among SMM's sample enterprises in four cities (Shanghai, Lecong, Tianjin, and Ningbo) reached 17,210 tonnes, representing a daily increase of 7,030 tonnes or 69.1% compared to the previous day.

The futures market strengthened significantly, as the People's Bank of China (PBOC) announced a cut in the required reserve ratio (RRR), releasing RMB 1 trillion, and declared plans to reduce existing mortgage interest rates in the follow-up, stimulating market enthusiasm for procurement. Speculative demand notably increased, leading to robust trading of hot-rolled steel coils.