SHANGHAI, Aug 8 (SMM) –
HRC futures moved sideways yesterday, closing down 0.87% at 3,984 yuan/mt. In the spot market, mainstream offers for HRC declined by 10-30 yuan/mt yesterday. This week, maintenance-generated HRC production loss dropped significantly, probably piling higher pressure on the supply side. At present, purchase aimed to meet rigid terminal demand in the market, and the terminal demand may improve this week. Under such circumstance, unbalanced supply-demand fundamentals of HRC unfolded.
In the follow-up, macroscopically, the CPI and PPI data to be released on August 9 may have a certain impact on HRC market. If the CPI breaks 0, rebar market will be inclined to fall into a recession. In addition, the fifth round of coke price hikes is in progress, but is unlikely to be seen on insufficient upward momentum. HRC market may swing widely in a short term before production restrictions. However, spot traders need to be cautious about the impact of feasible arbitrage on spot prices.
