SMM daily comment on domestic rebar market (Aug 21)

SHANGHAI, Aug 21 (SMM) –

Rebar futures prices closed down 1.4% at 3,666 yuan/mt. The spot market price fluctuated downward. On the demand side, the August LPR macro data frustrated the market sentiment. The terminal market purchases were still based on demand, while the demand for speculative purchases was average, and the whole-day transactions were inactive.

The implementation of coking coal and coke price cut will decrease the cost, which will weaken the cost support from the raw materials and depress the market sentiment. At the end of the off-season, the production restriction policy is not implemented yet and the supply pressure is not significantly alleviated. Influenced by weak supply and demand, the short-term steel price upward driving force is insufficient, with downside risks simmering.