[SMM Rebar Daily Review] Macro Gameplay Coupled With Weak Supply and Demand, Construction Steel Futures and Spot Prices Remain in the Doldrums

Today, the futures market continued to fluctuate, with significant volatility during the session due to the impact of negotiation expectations, eventually closing at 2974, down 0.07% from the previous trading day. On the spot market, prices showed mixed performance, with fluctuations ranging from 10-30 yuan/mt, and overall trading activity was weak throughout the day. On the supply side, some EAF steel mills have implemented production reduction or suspension plans due to difficulties in acquiring steel scrap and worsening profit losses. In terms of blast furnace production, according to SMM's weekly maintenance survey, the impact from maintenance on construction steel production this week was 1.1378 million mt, an increase of 24,000 mt WoW, indicating an overall decrease in supply. On the demand side, north China continued to experience high temperatures, while south China faced persistent heavy rainfall, limiting construction progress at downstream sites. Overall, just-in-time procurement was maintained, with a slight slowdown in the pace of procurement and weak demand performance. Overall, the current supply and demand for construction steel are both weak, and fundamental contradictions are gradually accumulating. Meanwhile, the Sino-US talks are still ongoing. Before any favourable macro front news is released, it is expected that construction steel prices will continue to fluctuate downward.