SMM Daily Comment On Domestic Rebar Market (Sep 19)

SHANGHAI, Sep 19 (SMM) – Rebar futures prices fluctuated upward and closed at 3,831 yuan/mt, up 0.29% from the previous trading day, and spot market prices rose sharply throughout the day. According to SMM research, the production reduction of rebar caused by maintenance this week was 796,400 mt, a decrease of 9,300 mt from last week, and the supply was basically stable. Steel mills in some areas held a strong willingness to raise prices, with spot prices increasing by 10-40 yuan/mt. Terminal procurement continues were based on demand, speculative demand was normal, and transactions were acceptable with a slight decline on a daily basis.

In the follow-up, the high output of pig iron and the steel mills’ replenishment needs before the holiday, the probability of a coke price hike was high, so cost support may become firmer. Besides, the fundamental imbalance of finished steel is moderate, while the risk of a structural decline in steel prices is low and downside room is limited, so steel prices are expected to fluctuate in the short term.