[SMM Rebar Daily Review] October peak season demand is average, prices mainly consolidate

Futures consolidated today, closing at 3,090, up 0.32% from the previous trading day. In the spot market, some market quotes edged up by 10 yuan/mt, while a few markets with shortages rose by 20 yuan/mt, with overall transaction performance being average.
From a fundamental perspective, on the supply side, for the long-process route, some producers in east China, benefiting from relatively better margins than other regions, have largely resumed normal production of construction steel after completing earlier maintenance, while some steel mills in other regions are still carrying out annual maintenance plans or switching to other products, so overall supply pressure is not prominent for now. For the short-process route, electric furnace mills are mostly maintaining mid-to-low production levels. On the demand side, market trading sentiment was average today, with a strong wait-and-see sentiment prevailing, and end-users mostly purchasing on a just-in-need basis at low prices. Overall, demand has not shown concentrated release after the holiday, and upward price momentum is insufficient. The implementation of the second round of coke price cuts has weakened cost support, and prices are expected to remain in a consolidation phase in the near term.