[SMM Rebar Daily Review] High temperatures and frequent rainfall coincide with local high school entrance exams; construction steel market enters "off-season dormant period"

Today, rebar futures initially declined before rebounding, closing at 2986, up 0.13% from the previous trading day. In terms of spot prices, most construction steel markets held their quotes steady in the morning, while a few markets saw a slight drop in quotes, with declines ranging from 10 to 30 yuan/mt. Trading performance was poor throughout the day. On the supply side, the production profits of construction steel at BF and EAF steel mills diverged. Blast furnaces enjoyed relatively considerable profits and mostly operated normally, while EAF steel mills faced poor profitability and difficulties in scrap collection, with most maintaining production during off-peak and valley electricity periods. On the demand side, rainy weather persisted in south China and high temperatures continued in the north. Meanwhile, the mid-term exams in some regions affected the construction pace at construction sites, resulting in weak downstream procurement enthusiasm. According to the SMM survey, the total inventory of rebar was 5.1853 million mt, down 7.51% WoW, with the de-stocking rate slowing down. Specifically, in-plant inventory decreased by 0.80% WoW, and social inventory decreased by 1.77% WoW. Overall, given the current market trading atmosphere amid off-season demand, it is expected that construction steel prices may consolidate in the short term.