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

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.