Stability Remains the Priority, Operating Rates Held Flat WoW

During the survey period (December 9–16), following the conclusion of a major conference, market expectations gradually returned to rationality. Futures showed rangebound fluctuations, while spot prices remained relatively stable. This week, the average rebar price edged down 1 yuan/mt WoW.

On the production side, electric furnace mills' profitability did not fluctuate significantly this week, and overall operations remained stable. Some enterprises flexibly adjusted operating hours based on their order intake. Overall,
- In east China, profitability at regional electric furnace mills changed little. Only one mill slightly reduced operating hours based on its order intake and inventory turnover.
- In south China, only two electric furnace mills made differentiated adjustments based on their business strategies: one appropriately increased operating hours in line with market orders and production-sales plans, while the other moderately reduced operating hours to optimize production load according to inventory turnover and raw material stockpiling pace.
- In central China, several electric furnace mills recently entered maintenance shutdowns, with no immediate plans to resume production. As a result, the overall operating rate in the region remained low.
- In south-west China, driven by improved shipments in neighboring regions, two electric furnace mills proactively increased operating hours to capture regional market benefits, directing their steel products to areas with stronger shipment performance.

This week, finished steel prices fluctuated within a narrow range, and steel scrap procurement prices remained stable. With no significant movements on either the cost side or selling prices, overall profitability at electric furnace mills held steady, showing no notable change in profitability. Overall, the fundamental structure of the rebar market has not undergone substantial shifts, and short-term price fluctuations remain primarily sentiment-driven. Next week, some electric furnace mills have explicitly indicated production cut plans, so the national operating rate for electric furnace steel is expected to show a slight downward trend.