Rebar Futures Fluctuated In A Wide Range, With A Difference Of 50 Yuan Between The High And Low Points

Rebar futures fluctuated in a wide range, with a difference of 50 yuan between the high and low points, and closed at 3,731 yuan/mt, unchanged day on day. On the supply side, production of blast furnace steel mills inched higher, while electric arc furnace steel mills showed low willingness to resume operation owing to poor profits and insufficient scrap steel supply. The overall supply of rebar was mainly stable. On the demand side, market sentiment cooled down without good news. However, some speculative demand remained under the volatile market. Most purchases in terminal market aimed to meet rigid demand, and the overall transaction appeared weak.

Looking at the follow-up, on the raw material side, steel mills’ willingness to replenish coke stocks was low. Iron ore shipments decreased slightly. Coupled with high-level operation of molten iron, the fundamentals of iron ore were relatively strong. For the finished goods, the profits of steel mills were slightly restored, the supply of rebar may be stable, and the terminal demand was tepid. On the whole, the current inventory can still be kept at a low level, and the contradiction between supply and demand is not yet prominent. Steel prices may remain high and volatile in the near future.