[SMM Hot-Rolled Coil Daily Trading] Spot Cargo Trading Weakened Again

Today, the iron ore futures market showed weak fluctuations. The main contract I2609 finally closed at 781.5 RMB/ton, down slightly by 0.32% from the previous trading session. Port spot prices remained largely unchanged from the previous day. Traders showed moderate enthusiasm in quoting; steel mills made few inquiries, with a stronger wait-and-see sentiment and cautious procurement.

Overall, inventory in mainstream markets in north China saw healthy destocking, inventory declines in mainstream markets in east China slowed down, and inventory in mainstream markets in south China and northeast China increased WoW. Ferrous metals experienced a round of rapid pullback this week. Considering that mine production resumptions and downstream demand off-season had been fully priced in, ferrous metals were expected to see a modest upward recovery after short-term fluctuations. In terms of hot-rolled coil fundamentals, the inventory inflection point had not yet arrived and contradictions had not significantly accumulated. The most-traded hot-rolled coil contract was expected to fluctuate within the range of 3,320-3,400 this week.