Due to lack of market confidence and steel mills cutting output, rebar inventory continued to fall rapidly in May.
In terms of transactions, the long-term sharp drop in steel prices has significantly weakened the market trading. Rebar was mainly purchased as needed, and speculative demand weakened.
Rebar demand is expected to fall further due to the off-season for building materials in June. The output cuts at steel mills fell short of expectations. Therefore, rebar inventories are likely to accumulate.
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