[SMM Rebar Daily Review] Futures Market Rallied Significantly, Spot Rebar Transactions Were Moderate

Futures rose significantly today, closing at 32,040 points, with an increase of 12.3%. In terms of spot cargo, quotations in various markets increased by different margins in the morning. The trading atmosphere was relatively active during the session, with speculative demand being somewhat released and normal procurement for rigid needs. On the industry side, multiple steel mills in Xinjiang announced today that they would cut crude steel production by 10% daily starting from now to continuously implement the regulation of crude steel production in Xinjiang. SMM actively followed up and learned that this round of production cuts was mainly for short-term control, and since the Xinjiang market is relatively independent, its impact on overall spot prices was limited. Looking ahead, the current market supply has entered a relatively stable phase, while demand is still in the process of recovery. However, market confidence is not as strong as in previous "Golden March, Silver April" periods, leading merchants to operate more cautiously, which to some extent limits price fluctuations. It is expected that construction steel prices will remain slightly strong tomorrow.