SMM Daily Rebar Briefing: Weak Supply-Demand Dynamics Curb Construction Material Price Upswing

Published: Jun 12, 2025 17:02

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[SMM Daily Rebar Briefing]
Title: Weak Supply and Demand, Insufficient Upward Momentum for Construction Material Prices

From a fundamental perspective, on the supply side, EAF steel mills have been affected by the difficulty in obtaining steel scrap and worsening profit losses, leading to a continuous decline in operating rates. In terms of integrated steel mills, influenced by the off-season demand and the diversion of pig iron due to better profits from certain steel products, individual steel mills have implemented production reduction or suspension plans, resulting in a significant overall reduction in supply. On the demand side, downstream construction sites have maintained just-in-time purchases, while traders lack confidence and remain cautious, opting to sell at lower prices, driving a continued decline in construction material inventory. According to the SMM survey, the total rebar inventory this week decreased by 2.20% WoW, with in-plant inventory falling by 1.12% WoW and social inventory decreasing by 2.78% WoW. Overall, the current supply and demand for construction materials are both weak. Considering the persistent heavy rainfall in south China and the prolonged high temperatures in the north, there is an expectation of further marginal weakening in demand. The upward momentum for construction material prices is limited, so it is expected that construction material prices will remain in the doldrums in the short term.

Data Source Statement: Except for publicly available information, all other data are processed by SMM based on publicly available information, market communication, and relying on SMM‘s internal database model. They are for reference only and do not constitute decision-making recommendations.

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