SMM daily comment on rebar market (Aug 9)

SHANGHAI, Aug 10 (SMM) –

Rebar futures prices closed down 0.46% at 3,700 yuan/mt yesterday. On the supply side, SMM production scheduling data showed that the planned output of BF steel mills in August shrank, seeing a drop by 5.98% in rebar and 5.84% in wire coil. On the demand side, given that rebar prices bottomed out and then stabilized, rigid terminal demand was reported, while speculative demand increased slightly. Rebar market activity improved.

From the follow-up point of view, supply and demand will be weak in a short run. Coke price hike squeezed profits of steel mills, thereby suppressing their enthusiasm for production. However, with environmental protection-related production limit, there was no large-scale maintenance of stee mills. Rebar prices may swing on a low point. Policy on crude steel output restrictions will deserve to be monitored.