SMM

[SMM Steel Morning Meeting Summary] From a fundamental perspective, on the supply side, EAF steel mills, affected by profitability, have mostly maintained their previous production levels, with relatively stable output of building materials. Blast furnace steel mills have recently seen an increase in maintenance activities, leading to a reduction in supply pressure after the holiday. On the demand side, influenced by rumors of crude steel production cuts, market sentiment has significantly improved. Coupled with the ongoing restocking demand before the May Day holiday, steel inventories have continued to decline, with some provinces experiencing shortages of rebar specifications. The bottom support for steel prices remains relatively firm. Overall, the market currently maintains a weak balance between supply and demand, with relatively small fundamental imbalances. Short-term prices are likely to fluctuate with market sentiment. It is expected that steel prices will continue to hold up well today, but caution should also be exercised regarding potential sentiment changes due to the insufficient sustainability of the rumors' popularity.