SMM Daily Comment On Domestic Rebar Market (Sep 11)

SHANGHAI, Sep 11(SMM) – Rebar futures rebounded from lows and closed at 3,759 yuan/mt, up 0.05% from the previous trading day. Spot market prices maintained a sideways trend. On the supply side, most electric furnace rebar mills suffer losses, leaving mills with little motivation to raise production. On the demand side, market sentiment improved after rebar futures prices surged in afternoon session. Fading impact of typhoon in South China also contributed to higher transactions.

Looking forward, given the current iron ore and coke prices, cost support is still solid. Rebar oversupply pressure has eased amid shrinking profits, and stocks continued to decline. Macro tailwind has also restored market confidence somehow. Short-term rebar prices may hover sideways.