SMM

Today, rebar futures fluctuated and closed at 3,127, up 1.23% from the previous trading day. Spot prices in various regions rose to varying degrees, and trading conditions improved compared to yesterday.

On the supply side, according to the SMM survey, the operating rate of 50 electric furnace steel mills producing building materials nationwide was 37.16% this week, up 0.64% WoW from the previous period. Currently, the operating conditions of electric furnace mills vary across regions. In the southwest region, due to electricity subsidies, market efficiency has recovered, and some electric furnace mills have increased their operating hours. In the south China region, affected by rainy weather and difficulties in collecting steel scrap, overall efficiency is poor, and some severely loss-making electric furnace mills have slightly reduced their operating hours. On the demand side, as the mid-year peak season approaches its end, the incremental space for market demand is limited. Currently, trading volumes of real estate enterprises are still fluctuating at low levels, and demand sustainability is insufficient. Overall, with the preliminary agreement reached in the Sino-US trade tariff negotiations, market sentiment has improved somewhat. However, the short-term improvement in sentiment may not be able to sustainably stimulate steel price increases. Therefore, it is expected that the upside potential for steel prices will be limited.