SMM daily comment on domestic rebar market (Aug 25)

SHANGHAI, Aug 28 (SMM) –

Rebar futures prices fluctuated and closed at 3,716 yuan/mt, a decrease of 0.51% from the previous trading day. Spot market prices were mixed throughout the day. On the demand side, Work Plan for Steady Growth of the Iron and Steel Industry jointly issued by the Ministry of Industry and Information Technology and other six departments barely affected last Friday’s rebar market. Demand was subdued throughout the day. Terminal market purchases continued to be based on demand.

In the follow-ups, the traditional peak demand season in September is coming. Rumors say there will be detailed rules for crude steel production cap policy in Shanxi and other places, which could ease the pressure on the supply side. In addition, seasonal rigid demand may improve, so steel prices are expected to fluctuate upward in the medium and long term. However, the effect of production cap policy is unknown in the short term, steel prices may remain within a narrow range.