[SMM Rebar Daily Review] Wait-and-see sentiment continues to ferment, and the short-term trend of being in the doldrums is hard to change

Rebar futures fluctuated today, closing at 2,986, up 0.13% from the previous trading day. Spot price-wise, most regions saw slight declines in morning quotes, dropping 10-20 yuan/mt, with weak market sentiment and mediocre trading performance throughout the day. Fundamentally, supply side, EAF steel mill profits continued to shrink, with three new electric furnaces undergoing maintenance shutdowns this week and two others reducing operating hours. According to the SMM survey, the operating rate of 50 construction steel-focused EAF steel mills nationwide stood at 30.98%, down 3.66% WoW. Blast furnace steel mills maintained profitability, sustaining high production enthusiasm, though overall supply pressure persisted. Demand side, downstream end-users primarily made just-in-time procurement, resulting in generally lackluster market transactions. Overseas political risks and domestic macro-level events, including key meetings, had relatively limited impact on construction steel market sentiment, with prevailing wait-and-see attitudes. Overall, current fundamentals of construction steel showed relatively small changes, with prices likely to remain in the doldrums in the short term. Close attention should be paid to geopolitical developments abroad.