[SMM Rebar Daily Review] Both Supply and Demand Are Weak, Showing a Sluggish Trend; 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 was generally average throughout the day. From a fundamental perspective, on the supply side, blast furnace steel mills still had profit margins in producing construction steel, and their willingness to produce was moderate, maintaining normal production levels. EAF steel mills faced greater difficulties in collecting scrap, with some electric furnace plants halting operations. Overall, the supply pressure for construction steel was 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 rainfall and floods in south China, further impeding construction progress at construction sites. Overall demand performance was average. During the holiday, the pace of downstream purchases slowed, and inventory levels slightly increased in some regions. Overall, the fundamentals indicated 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. Attention should be paid to changes in the macroeconomic environment and downstream demand in the future.