The fundamentals remain relatively healthy with total building materials inventory continuing to decline for multiple weeks.

Today, rebar futures fluctuated rangebound, closing at 3,164, down 0.19% from the previous trading day. As the holiday approaches, market sentiment has turned cautious, with transactions mainly focused on low-priced resources.

Supply side, the operating rates of BF and EAF steel mills have diverged. EAF steel mills have reduced operating hours due to less-than-ideal profitability, while BF steel mills, with moderate profitability, have resumed normal operations as planned, leading to an increase in pig iron production. Demand side, as weather conditions improve, construction site demand continues to recover, and building materials inventory remains in a destocking cycle. This week, total rebar inventory stood at 7.4463 million mt, down 2.57% WoW. Overall, the steel market is experiencing both supply and demand growth, with building materials inventory continuing to decline. The fundamental imbalance is not yet prominent, and steel prices are expected to maintain a narrow rangebound fluctuation next week. Subsequent attention should focus on the recovery of demand and macro-level developments.