SMM Daily HRC Market Comment (Apr 27, 2023)

SHANGHAI, Apr 27 (SMM) - HRC futures prices first rose and then fluctuated downwards yesterday April 26, closing down 0.4% at 3,771 yuan/mt. In the spot market, the quotations of hot-rolled coils in mainstream cities across the country were mixed, and the overall transactions were moderate. Operating rates of blast furnaces at steel mills dropped 1.94 percentage points from a week ago to 93.31% as of April 26, SMM survey showed. The average capacity utilisation rate stood at 94.76%, a drop of 1.65 percentage points WoW. The daily average pig iron production of sample steel mills was 2.27 million mt, a decrease of 39,500 mt. In terms of demand, end-users mostly adopted a wait-and-see approach, with no strong willingness to stock up ahead of the upcoming Labour Day holiday. In view of weak raw material prices and poor demand, market pessimism remained strong. HRC prices may fluctuate downwards in the short term. Traders should avoid stocking up and keep low inventories instead.