【SMM Rebar Daily Review】Market Sentiment Diverged, Spot Cargo Fluctuated Rangebound

Rebar futures fluctuated within a narrow range today, closing at 3,209 points, up 0.06%. Spot cargo, the market quotations in various regions mostly remained stable at the opening, with a moderate trading atmosphere during the session. In the afternoon, prices in some markets slightly softened, and the overall trading volume was moderate. Supply side, most long-process steel mills in various regions still maintain certain profitability in building materials production, while some regions have started to experience losses. Short-process steel mills face poor profitability and difficulties in scrap collection, leading to a tendency for the operating rate of sampled steel mills to decrease rather than increase, with overall supply remaining relatively stable. Demand side, downstream demand is constrained by funding conditions, and its recovery strength falls short of expectations. Additionally, market merchants are currently operating with low inventory to control risks, and are cautious about restocking at low prices amid price fluctuations, with a strong willingness to sell at higher prices. Overall, building materials prices are expected to remain stable tomorrow.