Rebar prices fluctuated slightly, and some regions will need to restock [SMM Rebar Daily Review]

Rebar prcies fluctuated slightly, up 0.14% on the day to close at 3,675 yuan/mt. In terms of spot market, market quotations were mainly stable, and some regions still have demand for stocking, but as far as the overall transaction was still relatively moderate. On the cost, iron ore is operating at a high level and coking coke price is still on the rise. There may be 4-5 rounds of price increases in total, with strong cost support. The supply of steel scrap in the EAF steel mills is tight and the enthusiasm for increasing production is limited, but BF steel mills still have certain profit margins and most of them have plans to resume production in the future. The increase in supply may put certain pressure on steel prices. On the demand, some regions still increased their inventories in the last two days before the holiday, but subsequent macroeconomic policies have not been favorable, and the room for incremental demand is limited.
Steel prices are under supply pressure and supported by costs, and are unlikely to fluctuate significantly in the short term. If tomorrow's PMI is lower than expected, there may be a risk of a temporary downward trend in subsequent steel prices.