SMM Daily Comment On Domestic Rebar Market (Sep 14)

SHANGHAI, Sep 14(SMM) – Rebar futures prices fluctuated and closed at 3,794 yuan/mt, up 0.56% from the previous trading day. Spot market prices moved sideways throughout the day. Moderate demand and low supply drove rebar inventories to decline, but the drop slowed. On the demand side, there are numerous news within the day, which promoted rebar futures prices to soar in the afternoon, with transactions improving and speculative purchases increasing. However, terminal traders still focused on on-demand purchases. The overall transaction was acceptable.

Looking forward, due to profit factors, rebar output was at the low point of the peak season. The focus of demand markets was on marginal improvement and future expectations. It is recommended that market participants pay attention to real estate-related macro data in August which may boost market confidence and so encourage short-term steel prices to fluctuate upward.