Rebar Prices At Risk of Falling if Supply Exceedd Demand

SHANGHAI, Mar 2 (SMM) - Rebar futures prices added 1.10% yesterday. China's manufacturing PMI in February was announced, which was better than market expectations. Market’s confidence in economic recovery increased, driving the ferrous metal prices to increase. On the supply side, according to SMM research, the production of BF and EAF steel mills gradually will increase in March, and the output of rebar is expected to rebound at an accelerated pace. On the demand side, as both futures and spot prices fluctuated upwards, terminal demand increased and traders purchased actively.

The Two Sessions will be held soon, and the market is looking forward to the release of some good news. Superimposed on the recent increasing transactions, market sentiment has improved significantly, and short-term steel prices may continue to run relatively strong. In the medium term, it is recommended to pay attention to policy trends during important meetings, and the resumption and production increase of steel mills in March. If the increase in production exceeds demand, market confidence may be shaken, and steel prices are at risk of falling from high levels.