[SMM Rebar Daily Review] Fundamentals Continue to Improve, Building Materials Prices More Likely to Rise Than Fall

Futures consolidated with an upward bias today, closing at 3,177, up 0.6% from the previous trading day. In the spot market, most market quotes were stable in early trading. In the afternoon, futures continued to drift higher, and spot prices in most markets were raised by 10-20 yuan/mt. Overall transaction performance improved from yesterday.
Fundamentals side, supply side, some blast furnace steel mills conducted maintenance on blast furnaces and associated construction steel rolling lines due to cost pressure. According to SMM's weekly maintenance survey, this period's construction steel impact from maintenance was 105.39 mt, up 30,000 mt MoM. EAF steel mills saw improved per-tonne margins, with some electric furnace plants resuming production or extending operating hours, resulting in relatively small fluctuations in overall construction steel supply. Demand side, trading sentiment improved as rebar futures rose, with some end-users locking in prices to purchase. Meanwhile, favorable weather in east China slightly accelerated construction pace, releasing downstream demand. Overall, construction steel fundamentals showed signs of continued improvement. Combined with cost support underpinning construction steel prices, spot rebar prices are expected to be more likely to rise than fall in the short term.