SMM Daily Price Review and Forecast on Rebar Market

SHANGHAI, August 4, (SMM)-

Rebar futures market weakened yesterday, closing down 2.78% at 3,728 yuan/mt, while spot prices swung violently. On the demand side, rebar futures fell below 3,800 yuan/mt, and kept fluctuating at a low level. There was the tug-of-war between longs and shorts, and capital side waited for an opportunity. The market was full of gossips. The futures and spot companies that had available arbitrage in the East China sold off goods, supporting rebar market activity at a modest level. Terminal buyers largely purchased on a need-to basis. The transaction picture throughout the day was lukewarm.

Looking at the follow-up, in the rebar market, inventory piled up, while demand softened. Worse fundamentals will be reported. The overall inventory gradually approached the level of the same period in previous years. In addition, impact of positive macro news waned off. Therefore, rebar prices are expected to continue to weaken.