Rebar Steel Mills To Reduce Output Due To Losses And Weak Demand

SHANGHAI, Oct 19(SMM) – According to SMM, the most-traded 2401 rebar contract fell yesterday, with a daily decrease of 1.01%, closing at 3615 yuan/mt, and spot prices were mixed. In terms of supply, according to SMM research, due to losses, some blast furnaces carried out annual inspections in advance. The BF operating rate dropped by 0.15% this week. However, in terms of electric furnace steel mills, some plants completed technical transformation and resumed production. With the above factors, rebar supply remained stable. In terms of demand, macro data were released, and real estate data continued to bottom out. Meanwhile, ferrous metal markets were declining, and terminal rigid demand was limited, so market purchasing atmosphere cooled with shrinking intraday transactions. At the macro level, the smooth advancement of the “Belt and Road Initiative” may provide new opportunities for Chinese steel, but market participants still need to pay attention to the global capital risk aversion caused by the intensified Palestinian-Israeli conflict. Raw material prices are expected to stay flat in the short term. Steel mills find it difficult to improve profits by exerting pressure on upstream suppliers, and may gradually reduce production to meet actual market demand due to losses. Rebar prices are anticipated to oscillate in the short term.