Rebar Prices Rise after Falling

Rebar prices rose after falling last week. During the "two sessions" period, macro news increased. Under the condition of stable and moderate policies, the short-term supply and demand of rebar is balanced. It is expected that the SHFE 2305 rebar contract will fluctuate between 4,100-4,300 yuan/mt next week. If the more favourable news are released, steel prices are expected to break through to around 4,360 yuan/mt.

On the supply side, according to SMM research, the operating rates of EAF steel mills increased 3.86 percentage points to 48.18%. In terms of BF steel mills, the rebar output decreased by 45,700 mt to 475,200 mt due to maintenance. On the demand side, most terminal projects have resumed work. Affected by price drops at the beginning of last week, market speculative demand has weakened. After steel prices stabilised and rebounded, market transactions have improved. The overall demand was acceptable.