[SMM Rebar Daily Review] Construction Disrupted by Plum Rains and High Temperature, Short-Term Weakness in Construction Steel Market Unlikely to Change

Futures market fluctuated today, closing at 2,981, down 0.03% from the previous trading day. Spot side, most market offers dropped slightly by 10-20 yuan/mt, with weak trading activity throughout the day. Fundamentals side, supply side, EAF steel mills saw intensified losses, with some producers planning production halts. Blast furnace side, benefiting from continued raw material price concessions, most steel mills maintained profit margins. However, influenced by crude steel output reduction policies and the transition to off-season demand, some mills gradually implemented production cut plans, leading to significant supply reductions in construction steel. Demand side, south China entered the rainy season while northern regions experienced persistent high temperatures, restricting construction progress at downstream sites and slightly slowing procurement pace, further weakening demand. Specifically, current construction steel faces weak supply and demand, with fundamental contradictions gradually accumulating. Coupled with expectations of further raw material price concessions and insufficient cost support for steel prices, short-term construction steel prices are expected to remain in the doldrums.