[SMM Rebar Daily Review] High temperatures in the north and rainy season in the south curb demand, construction steel prices continue to weaken

Futures fluctuated downward today, closing at 3,058, down 0.59% from the previous trading day. Spot side, market quotations were largely stable in the morning session, but some regions saw loosened offers in the afternoon due to the weakening futures market, with declines of 10-20 yuan/mt. Trading performance was moderate throughout the day. Fundamentally, supply side, according to SMM's weekly maintenance survey, the impact from maintenance on construction steel this week was 1.1378 million mt, up 24,000 mt WoW. For EAF, some steel mills recently resumed production as planned, with overall supply remaining relatively unchanged. Demand side, many areas in south China have entered a rainy period, while north China is experiencing widespread high temperatures, slightly hindering construction site operations. End-user purchase demand declined, coupled with the weakening futures market, leading to a sluggish speculative atmosphere. Merchants generally adopted a cautious wait-and-see approach, resulting in an overall weakening in demand. The market's weak pattern is expected to persist in the short term, with construction steel prices likely to continue a slight downward trend.