[SMM Rebar Daily Review] Supply-demand imbalance is intensifying, with short-term prices consolidating

Today, rebar futures fluctuated downward, closing at 2964, down 0.77% from the previous trading day. In terms of spot prices, spot quotes in most regions remained stable, with only a few regions experiencing a decline of around 10-20 yuan/mt. Trading volume throughout the day improved slightly compared to yesterday, primarily driven by low-priced resources. On the supply side, according to the SMM survey, due to the significant decline in finished steel prices in recent days, the economic benefits of EAF steel mills decreased WoW. Multiple steel mills reduced their operating hours. However, as one EAF steel mill resumed production as planned, the national EAF operating rate this week reached 39.14%, up 0.68% WoW. Blast furnace steel mills, with their profit margins still intact, maintained strong production enthusiasm, and the overall supply pressure remained unabated. On the demand side, construction steel demand is currently in the transition phase between the "off-season and peak season," with insufficient demand resilience. Market purchases are primarily driven by rigid demand. Overall, the current supply-demand imbalance is intensifying, and market sentiment is unlikely to improve. It is expected that spot prices of construction steel will consolidate in the short term.