[SMM Rebar Daily Review] Demand for stockpiling increased before the holiday, construction steel prices stopped falling and stabilized

Today, rebar futures fluctuated upward, closing at 2978, up 0.47% from the previous trading day. In terms of spot prices, spot offers in various regions were mostly stable in the morning. In the afternoon, rebar futures fluctuated and rose, with some market offers increasing slightly by around 10-20 yuan/mt. Trading volume improved throughout the day. On the supply side, production profits for construction steel diverged between BF and EAF steel mills. Blast furnaces maintained relatively good profits and mostly operated normally, while EAF steel mills faced poor profitability and difficulties in scrap collection, with most EAF steel mills maintaining production during off-peak and mid-peak electricity tariff periods. On the demand side, market sentiment of wait-and-see eased somewhat, with downstream procurement enthusiasm increasing. Meanwhile, end-users began stockpiling ahead of the holiday. According to the SMM survey, the total inventory of rebar was 5.4782 million mt, down 3.66% WoW, with inventory depletion accelerating. Overall, the current inventory pressure for construction steel is relatively small, and downstream demand for stockpiling ahead of the holiday remains. Trading sentiment in the market has heated up, and it is expected that construction steel prices will consolidate and hold up well in the short term.