SMM Daily Comment On Chinese Rebar Market

SHANGHAI, Jun 29 (SMM) – Rebar futures fluctuated widely today, closing up 0.16% at 3,723 yuan/mt. On the supply side, BF steel mills maintained a small increase in production, while EF steel mills maintained low operating rates due to losses and difficulties in sourcing steel scrap. Overall, rebar supply maintained a slight increase. On the demand side, terminal demand performed poorly amid hot weather. According to SMM statistics, the operating rate of blast furnaces this week is 93.8%, an increase of 0.3 percentage point from the previous week. Pig iron production has not yet peaked, which may boost iron ore prices in the short term. Coke prices may hold stable amid low stocks at coking plants. Rebar stocks began to grow this week, dampening market sentiment. However, solid cost support and anticipation for stimulus polices may keep rebar prices at highs. Market will eye tomorrow's PMI data.