SMM HRC Daily: Futures Slightly Up, Moderate Transactions Amid Weak Sentiment

[SMM HRC Daily Review: Futures Fluctuated Rangebound, HRC Transactions Were Moderate]

HRC futures fluctuated rangebound during the day, with the most-traded contract closing at 3,425, up 0.26% WoW. Market trading sentiment was below average, speculative demand was weak, and downstream purchase willingness declined, leading to moderate transactions in most major HRC markets.

Fundamentally, according to SMM statistics, total shipments in major markets this week were estimated at 300,900 mt, an increase of 24,400 mt WoW. HRC inventories in markets such as Shanghai, Lecong, and Shenyang declined this week, with end-use demand still providing support. The supply and demand imbalance for HRC remains insignificant. Attention will continue to focus on SMM's weekly apparent demand data to be released tomorrow.

In summary, considering the weakening cost support recently, HRC prices are expected to fluctuate downward in the short term.