[SMM Rebar Daily Review] Favourable macro front boosts market confidence, can the rise in steel prices continue?

Published: Jun 11, 2025 17:37

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[SMM Rebar Daily Review: Favourable Macro Front Boosts Market Confidence, Can Steel Price Increase Continue?] Today, positive signals were released from the macro perspective. The agreement framework reached in principle during the China-US-London negotiations boosted market sentiment, and the futures market fluctuated upwards. On the spot side, most market quotes increased, with rises of 10-30 yuan/mt, and overall trading performance was average.

Macro perspective, positive signals emerged today as China and the US reached a preliminary agreement framework during London talks, boosting market sentiment with futures market trending upward. Spot side, most market quotations rose by 10-30 yuan/mt, while overall trading activity remained moderate. Supply side, blast furnace steel mills still maintained profits, but sporadic production cuts were scheduled due to crude steel reduction policies and seasonal demand transition. EAF side, the SMM survey showed the operating rate of 50 construction steel-focused electric furnaces nationwide dropped 3.78% MoM to 34.64%, with daily average production declining 5,600 mt MoM to 82,700 mt, indicating significant supply contraction. Demand side, end-users continued purchasing as needed, though speculative demand partially revived today amid the favourable macro front. Overall, construction steel fundamentals showed relatively small changes, with short-term prices likely fluctuating alongside macro expectations. Prices are expected to hold up well tomorrow, yet sentiment shifts from macro news realization warrant caution.

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