[SMM Rebar Daily Review] Traditional Peak Demand Season in September Has Not Yet Started, Prices Mostly Fluctuate with Raw Materials

Futures consolidated on a subdued note today, closing at 3,153, down 0.22% from the previous trading day. In the spot market, most market quotes remained stable. In the afternoon, futures consolidated on a weak note, with prices in some markets edging down by 10-20 yuan/mt. Overall trading activity was mediocre and on the soft side.
From a fundamental perspective, on the supply side, steel mill production costs continued to climb, with most margins below the break-even line. Mills have been scheduling maintenance plans for blast furnaces and associated rolling lines. In contrast, EAF steel mills generally reported decent overall per-mt margins, with strong production enthusiasm and extended operating hours in some cases. On the demand side, the decline in futures dampened speculative sentiment, with downstream buyers only making small purchases at low prices to restock. Overall, the traditional September demand peak has yet to kick in. Rebar futures mostly fluctuated in tandem with raw material futures, while expectations for the fifth round of coke price increases will provide bottom support for spot prices of construction steel.