[SMM Rebar Daily Review] The prices remained the downward trend amid sluggish market sentiment

Today's rebar prices fluctuated at a low level and closed at 3712 yuan/mt, down 0.70%. The spot market price continued to loosen the supply throughout the day. The operating rate of 50 electric furnace steel mills in the country that mainly produce building materials this week was 44.28 %, up 10.52 percentage points MoM, and the EF steel mills continued the normal pace of production resumption. On the demand, spot premium rose, and futures and spot prices entered the market. Terminal purchases were not active. A small amount of bottom-buying demand was released in some areas, and transactions continued to be weak throughout the day.

From a macro perspective, the Two Sessions have no significant positive impact on the black market for the time being: in terms of industry, the raw material end’s support for finished product prices has weakened, and costs are still moving downwards. Both supply and demand are increasing, and the contradictions in the fundamentals of building materials need to be digested. In the short term, the upward potential for steel prices was limited, and the overall trend is still weak.