Hrc prices across key markets in china fell by 10-30 yuan per tonne in the days following the national day holiday with the most significant declines observed in eastern and southern regions. In shanghai mainstream resource quotes dropped 20-30 yuan/mt settling at 3,280-3,290 yuan/mt while ningbo spot cargo also fell by the same amount. Hangzhou spot cargo decreased by 20 yuan/mt to 3,300-3,310 yuan/mt. In southern china lecong quotes fell 10-20 yuan/mt with mainstream resource quotes at 3,260-3,270 yuan/mt. Northern tangshan area quotes dropped about 10 yuan/mt with traders holding firm despite weak demand and low inventory. The cold-rolled market saw bensteel group's shanghai cold-rolled quoted at 3,710 yuan/mt down 10 yuan/mt from pre-holiday levels. Overall the market remains in a wait-and-see state with limited restocking and low trading volume. Analysts predict hrc prices will remain within a weak range of 3230-3300 yuan/mt in the short term as nationwide inventory is expected to accumulate significantly. The report highlights the need to monitor demand recovery and inventory destocking in the first 1-2 weeks after the holiday.
The smm analysis notes that while some end-user purchasing enthusiasm remains weak traders are cautiously holding prices firm. The market sentiment is generally average with no significant inquiry releases. The report also emphasizes that the data is based on publicly available information and market exchanges with no specific treatment of the holiday's impact on demand or supply chains. Smm retains the right to adjust the analysis based on ongoing developments.
Looking ahead the focus is on the 3230-3300 yuan/mt range for the most-traded contract as the market remains cautious about inventory accumulation and demand recovery. The report underscores the importance of monitoring the first 1-2 weeks after the holiday to assess the true impact of the holiday on hrc prices and market sentiment.