SMM Rebar Daily: Futures Drop Sharply, Winter Stockpiling Unlikely to Support Prices

[SMM Rebar Daily Review: Futures Accelerate Decline, Can Winter Stockpiling Support Firm Quotes Effectively?]

Today, rebar futures accelerated their decline, closing at 3,312, down 1.55%. In the spot market, most regions maintained stable quotes in the morning, observing the market. However, as futures plunged in the afternoon near the close, traders showed limited follow-through on the decline. With weak futures, the market remained cautious, and overall transactions weakened further compared to yesterday.

Cost side, iron ore and coke prices both declined to varying degrees, with drops exceeding those of finished steel, weakening cost support for construction materials. Supply and demand, steel mill output continued to decrease, with some regions experiencing shortages in certain specifications. However, downstream demand weakened further with falling temperatures, raising the risk of inventory accumulation. Coupled with insufficient macro-level support, construction material prices lacked upward momentum.

Recently, some steel mills in certain regions stood firm on quotes, but market expectations for the coming year remain pessimistic. Winter stockpiling willingness is generally low, making it difficult for firm quotes to be effective. In the short term, construction material prices may fluctuate downward.