"SMM hot-rolled coil daily review: futures continue to rise, need to pay attention to the sustainability of inventory reductions

Hot-rolled coil futures rose throughout the day, closing at 4055, up 0.95%. On the spot market, mainstream market prices were stable with slight increases. New maintenance reductions in hot-rolled coils are expected this week, with a small increase in supply expected; on the demand side, hot-rolled coil prices remain high, downstream replenishment intentions are not strong, and trading attitude is cautious. In terms of cost, short-term hot-rolled coil prices are relatively stable. Overall, although hot-rolled coil inventory is still in the process of depleting, the possibility of intensified contradictions in the supply-strong and demand-stable pattern requires further attention to the sustainability of de-stocking. In addition, the official PMI value of the manufacturing industry will be released on Thursday this week. If it remains below 50, the main funds may take this opportunity to attack the long position, but in the short term, there is a greater possibility of hot-rolled coil prices oscillating at high levels with cost support."