[SMM Rebar Daily Review] Futures market retreat drags down market sentiment; construction steel prices continue to oscillate in a weak equilibrium

Futures market fluctuated downward today, closing at 3,114, down 0.54% from the previous trading day. Spot side, market offers showed mixed performance, with overall price fluctuations ranging 10-20 yuan/mt. Trading side, affected by the futures pullback, market activity weakened slightly, showing mediocre performance overall.

Fundamentals-wise, EAF side. Steel mills generally reported improved profitability, but overall operating rates remained at low-to-moderate levels with limited incremental output. Blast furnace steel mill side, most mills maintained moderate profits with steady production enthusiasm. According to SMM's weekly survey, this week's construction steel impact from maintenance stood at 1.2678 million mt, down 2,000 mt WoW, while next week's figure is projected at 1.2166 million mt, down 51,200 mt WoW, indicating a slight supply increase. Demand side, today's NBS data showed H1 real estate new construction area reached 303.64 million m², down 20% with narrowing decline, but current construction steel end-user demand remained weak. Coupled with futures market pullback, market activity declined, showing moderate performance overall. Under weak supply-demand balance, short-term construction steel prices are expected to remain in the doldrums.