[SMM Rebar Daily Review] Supply-demand weak balance pattern continues, short-term prices may move sideways

Futures consolidated on a subdued note today, closing at 3,073, down 0.39% from the previous trading day. In the spot market, most regional quotes held steady in the morning, while a few edged down by 10 yuan/mt in the afternoon, with overall transactions generally subdued.
From a fundamental perspective, on the supply side, blast furnace steel mills mostly maintained their current underutilized production pace, with a few resuming production on rolling lines as planned. EAF steel mills reported that, thanks to improved cost-effectiveness of hot metal, scrap procurement difficulties at electric furnaces have eased. Coupled with per-tonne margins mostly above the break-even line, some EAF mills slightly extended operating hours or resumed production. The operating rate of 50 major EAF steel mills producing construction steel nationwide stood at 37.5%, up 2.0% WoW. On the demand side, futures consolidated on a subdued note today, dampening market trading sentiment. Meanwhile, severe shortages of certain rebar specifications in multiple regions kept prices firm, while end-user purchasing willingness remained low. Overall, the short-term market lacks clear direction, and rebar prices are expected to consolidate.