SMM Daily Comment On Domestic Rebar Market (Sep 12)

SHANGHAI, Sep 12(SMM) – Rebar futures continued to fluctuate strongly and closed at 3791 yuan/mt, up 1.3% day-to-day. Spot market prices generally rose. On the supply side, rebar profits were poor, so BF steel mills turned to producing various types. EF steel mills were lack of production enthusiasm because of the difficulty in purchasing steel scrap. Therefore, the overall rebar output decreased slightly. On the demand side, rising futures drove up spot market prices and the market trading atmosphere was active, but the terminal market basically purchased on rigid demand. Since the Asian Games in the mid-to-late September will affect logistics and transportation, demand in East China has shown signs of rising recently. After the implementation of the housing loan easing policy, market confidence gradually recovered. The recent demand for iron ore promoted iron ore prices to remain high and may continue to rise in the short term, which will support the cost of steel. And as market supply decreases and demand increases, steel prices may continue to fluctuate upward in the short term.