[SMM Survey: Divergence in Operating Status of Rolling Lines in Central China, Significant Inventory Accumulation - What's Next?] During the survey period (April 29 - May 5), the operating rate of rebar rolling lines at steel mills in the Central China region declined, while the capacity utilisation rate rose slightly; the capacity utilisation rate of wire rod rolling lines increased.

[SMM Weekly Maintenance Statistics] According to SMM statistics, for the week (May 3 to May 9), the impact of blast furnace maintenance on pig iron production was...

Preview: The People's Bank of China, the China Securities Regulatory Commission, and other departments will make announcements at 9 a.m. on the 7th, introducing the relevant situation of "a package of financial policies to support market stability and stabilize expectations.

[SMM Steel Morning Meeting Summary] From a fundamental perspective, on the supply side, blast furnace steel mills still have profit margins in producing construction materials, and their willingness to produce remains moderate, maintaining normal production levels. EAF steel mills are facing greater difficulties in collecting scrap, with some electric furnace plants halting operations. Overall, the supply pressure for construction materials is not significant. On the demand side, during the Labour Day holiday, cargo transportation was hindered, and construction activities in some regions were temporarily suspended. This was followed by rain and flood conditions in south China, further impeding construction progress at construction sites. Overall demand performance has been average. During the holiday, the pace of downstream purchases slowed down, and inventory levels in some regions increased slightly. Overall, the fundamentals indicate a situation of weak supply and demand, with slightly insufficient market confidence and cautious operations. It is expected that steel prices will remain in the doldrums in the short term. Going forward, it is necessary to closely monitor changes in the macroeconomic environment and downstream demand.

[SMM Rebar Daily Review: Weak Supply and Demand Show Signs of Decline, Prices Remain in the Doldrums] Today, rebar futures fluctuated downward, closing at 3,077, down 0.61% from the previous trading day. In terms of spot prices, spot cargo quotes in various regions were largely stable in the morning, with a strong wait-and-see sentiment in the market. In the afternoon, rebar futures fluctuated at lows, with prices in some regions falling by approximately 10-30 yuan/mt. Overall trading performance throughout the day was generally average.

US non-farm payrolls increased by 177,000 in April, compared to an estimated increase of 138,000 and a prior increase of 228,000. The March data was revised downward. The unemployment rate remained unchanged at 4.2%. The country will continue to increase central fiscal funding to support local and industry efforts in constructing a number of foundational, public-interest, and long-term data infrastructure projects. It will effectively utilize ultra-long-term special treasury bond funds to accelerate the construction of the national data infrastructure architecture. Looking ahead to the "15th Five-Year Plan" period, it will expedite the formulation of a national data infrastructure plan.

[SMM Steel Morning Meeting Summary] From a fundamental perspective, on the supply side, most blast furnace steel mills are generating profits from producing construction materials. A few manufacturers originally planned to conduct maintenance in early May, but have postponed it due to production profitability. Additionally, to meet billet orders, steel mills in coastal regions are offering significant discounts on their planned rebar output for May. Recently, steel scrap prices have remained above the psychological expectations of EAF steel mills, leading to persistent difficulties in scrap collection that continue to affect steel mill production. As a result, steel mills are generally maintaining a moderate production level. However, given the electricity price subsidies in some regions of Southwest China starting from May, it is not ruled out that manufacturers in these areas may increase their operating hours. On the demand side, downstream construction sites had stockpiling needs before the holiday, and overall market transaction performance was moderate. There is still an expectation for a wave of procurement volume to be released in project plans after the holiday, so demand remains promising. Looking ahead, supply-side pressure is not prominent for the time being, and demand expectations after the holiday are likely to be sustained, providing some support for the floor price of the market. However, considering the slower pace of inventory digestion at steel mills and traders during the holiday, inventory pressure may rebound in the first week after the holiday. It is expected that spot prices may still rise after the holiday, but the increase will be limited. Caution should be exercised against insufficient demand release after the holiday, which could force market sentiment to weaken, leading to a situation where prices jump initially and then pull back. Attention should be paid to the resistance level of 3170-3180 for the RB2510 contract after the holiday.

[Price Adjustment of Ordinary Steel for Phase 5-1 of 2025 by Yonggang] Prices of rebar and wire rod both increased

[SMM Construction Steel Inventory: Stable Supply and Increasing Demand Accelerate Destocking of Construction Steel. Can the Destocking Speed Be Maintained After the Holiday?] This week, the total inventory of construction steel continued to destock. The total inventory of rebar decreased by 5.94% WoW, and the total inventory of wire rod decreased by 7.27% WoW.

On May 1, SMM reported that the total rebar inventory for the week was 6.1678 million mt, a decrease of 389,600 mt WoW, down 5.94% WoW, and down 25.16% YoY on the lunar calendar. The total wire rod inventory nationwide was 1.1916 million mt, a decrease of 93,500 mt WoW, down 7.27% WoW, and down 32.93% YoY on the lunar calendar.