[SMM Rebar Daily Review] Futures and Spot Prices "Plummet in Unison," Market Confidence Hits "Rock Bottom"

Today, rebar futures fluctuated downward, closing at 2980, down 1.23% from the previous trading day. In terms of spot prices, the wait-and-see sentiment in the market continued to intensify, with the national spot market continuing its downward trend. Prices fell by approximately 10-50 yuan/mt, and overall trading volume remained weak throughout the day. On the supply side, according to the SMM survey, some steel mills slightly postponed the production resumptions of blast furnaces after maintenance, while some steel mills continued to suspend rolling operations. This week, the impact from maintenance on construction steel production was 1.172 million mt, an increase of 34,000 mt WoW, indicating a slight decline in supply. On the demand side, the enthusiasm for procurement by end-users significantly weakened, and speculative demand decreased, resulting in a relatively sluggish trading atmosphere in the market. Overall, driven by profits, the production enthusiasm of steel mills has not significantly diminished yet. However, the resilience of downstream demand is insufficient, and market confidence remains relatively low. It is expected that spot prices of construction steel will fluctuate downward in the short term.