[SMM Rebar Daily Review] Is the Market Bottoming Out?

Today, rebar futures prices rebounded from low levels, closing at 3,665 yuan/mt, up 0.63% from the previous trading day. In the spot market, the early session continued a weak trend, with prices in various regions weakening by 10-20 yuan/mt. In the afternoon, the market rebounded, and trading sentiment improved, leading to increased low-level transactions. From a fundamentals perspective, although prices have weakened recently and steel mill profits have turned negative in some regions, current rebar production has not been significantly adjusted, and short-term supply changes are minimal. Recently, market prices have adjusted, and the market tends to buy on the rise and not on the fall. Together with the college entrance examination and the Dragon Boat Festival holiday, downstream construction is restricted, and both speculative and end-user demand have declined, leading to an inventory turning point this week. Looking ahead, fundamental contradictions are gradually accumulating, and confidence in the spot market needs to be restored. It is expected that prices will consolidate in the short term.