SMM HRC Daily Review: Prices Fluctuate as Macro Policies and Market Fundamentals Converge

【SMM HRC Daily Review】Key Meeting Held, HRC Prices Rose First Then Fell During the Day

Today, HRC futures prices rose first then fell, with the most-traded contract closing at 3,204, down 0.31%. This week, HRC prices fluctuated, and the overall market trading situation improved WoW, with HRC inventory in mainstream cities continuing to decline. Looking ahead, on the macro front, the Politburo meeting emphasized the need to accelerate the implementation of more proactive and effective macro policies, making full use of more proactive fiscal policies and moderately loose monetary policies. The issuance and use of local government special bonds and ultra-long-term special treasury bonds will be expedited. On April 22, US President Trump publicly acknowledged that the current tariffs on Chinese exports to the US are too high, and the tax rate is expected to be significantly reduced, marking a softening of Trump's stance on tariff policy. Cost side, iron ore prices are still expected to remain strong before the holiday, while the increase in coke prices has temporarily fallen through, strengthening the cost support for HRC. Fundamental-wise, downstream end-users may continue to restock before the holiday, and HRC inventory will continue to decline. In summary, the fundamental imbalance of HRC is relatively small, and demand resilience is strong. The most-traded HRC futures contract is expected to operate in the range of 3,170-3,250 next week.