[SMM Rebar Daily Review] Construction steel trading was mediocre, with prices more likely to fall than rise in the short term

Today, the futures market fluctuated rangebound, closing at 3063, down 0.13% from the previous trading day. In the spot market, most market quotes dropped slightly in the morning, with declines of 10-20 yuan/mt. Trading sentiment improved slightly, and in the afternoon, rebar futures fluctuated rangebound, with spot prices rebounding slightly. The average price for the day was largely stable, and market trading performance was average. From a fundamental perspective, on the supply side, for EAF steel mills, profit losses persisted, and most independent EAF steel mills maintained low operating hours. For blast furnace steel mills, according to SMM's weekly maintenance survey, multiple steel mills resumed production after maintenance of their rolling lines. The impact from maintenance on construction steel was 1.2678 million mt, a decrease of 4,400 mt WoW, indicating a slight increase in supply. On the demand side, the "Danas" typhoon warning combined with persistent high temperatures slowed construction progress at some sites, with terminal purchases primarily driven by immediate needs. Overall, supply pressure remains, and low demand expectations are expected to persist during the traditional consumption off-season. Agents are adopting low-inventory operations, and the market is filled with wait-and-see sentiment. It is expected that construction steel prices will be more likely to fall than rise in the short term.