Rebar Prices To Go Up After Downward Corrections, Eyes Are On Friday’s CPI And PPI

SHANGHAI, Jun 8 (SMM) – Rebar futures prices closed down 0.93% at 3,621 yuan/mt yesterday. Spot prices in many regions dropped slightly amid weak demand. On the supply side, the profits of blast furnace steel mills have shrunk, thus some mills plan to undertake short-term maintenance. Electric furnace steel mills generally suffer steel scrap shortages and high costs, denting their production passion. On the demand side, a slight pullback in steel prices suppressed speculative demand. On the first day of the national college entrance examination, some cities restricted travel and work, thus terminal purchases slowed down, and transactions throughout the day were sluggish. Steel billet destocking in Tangshan continued. The peak of electricity consumption in summer is coming, thus the downward space for coal prices will be limited. The demand for iron ore is modest, forming cost support for steel prices. Macro sentiment has improved and may not turn pessimistic again in the short term. China’s net exports were unsatisfactory. Eyes are on CPI and PPI to be released on Friday. Rebar prices are expected to see downward corrections after recent rally and then go up.