[SMM Rebar Daily Review] Supply-demand imbalance is intensifying, making it difficult for short-term construction steel prices to break through the consolidation deadlock

Rebar futures consolidated today, closing at 3,063, up 0.07% from the previous trading day. Spot prices showed mixed performance, with fluctuations ranging from -20 to 10 yuan/mt, while overall trading activity remained subdued. Fundamentally, supply side, driven by last week's price increases, EAF steel mills saw improved profitability. One EAF steel mill resumed production this week, while two others extended operating hours. The national EAF operating rate reached 33.02%, up 1.16% WoW. Blast furnace steel mills maintained healthy profits and mostly adhered to normal production schedules. Demand side, construction companies generally reported tight cash flow, compounded by Typhoon Danas making landfall in east and south China, slowing construction progress. The market remained in the traditional off-season, with weak end-user purchasing enthusiasm and low stockpiling willingness. Agents reported overall sluggish sales. Looking ahead, the supply-demand imbalance for construction steel continues to accumulate, with cautious market sentiment prevailing. Short-term spot prices are expected to fluctuate.