[SMM Rebar Daily Review] Will the Subsequent Trend Be Boosted as Demand Continues to Slump?

Today, the futures market fluctuated and closed at 3061, down 0.07% from the previous trading day. On the spot cargo side, market quotes were largely stable in the morning session, while some regions saw loosened quotes in the afternoon, with a decline of 10-20 yuan/mt. Trading activity was sluggish throughout the day. On the supply side, according to the SMM survey, the operating rates of EAF steel mills in different regions diverged this week. In South China, due to rainy weather and poor sales of finished steel products, one additional EAF underwent maintenance. Meanwhile, two EAF steel mills in Central and Southwest China resumed production as planned. As a result, the operating rate of electric furnaces increased slightly WoW this week, with a slight increase in supply. On the demand side, the futures market maintained a fluctuating trend, and market sentiment for speculation remained low. Downstream construction sites, constrained by high temperatures or rainy weather, showed limited willingness to purchase, and demand continued to be weak. Overall, market sentiment is currently relatively cautious, with most merchants adopting a wait-and-see attitude. It remains to be seen whether the upcoming press conference of the State Council Information Office can boost market sentiment.