SMM daily comment on domestic rebar market (Aug 24)

SHANGHAI, Aug 24 (SMM) –

Rebar futures prices rose first and then dived towards the end of the trading session, declining 1.23% at 3,688 yuan/mt. Spot market price is stable and moderately strong throughout the whole day. On the demand side, after concentrated purchase at the beginning of the week, trading cooled today. The steel market is still in the doldrums, and the procurement is mainly based on rigid demand. Inventory continued to shrink this week, and seasonal rigid demand began to show signs of recovery.

In terms of follow-ups, supply-demand imbalance has shown no signs of worsening. Although the fundamentals were acceptable, confidence in the improvement of cyclical demand still lacked. Coupled with macroeconomic policies that tightened control over infrastructure construction, rebar prices plummeted. It’s difficult for market to pick up confidence and short-term steel prices are expected to fluctuate.