As supply and demand for construction steel were not fully matched across different markets, regional supply-demand mismatches created price differentiation, which in turn drove the cross-regional circulation of steel resources. When the regional price spread gradient was appropriate, regions with surplus construction steel capacity and production often shipped excess resources out, thereby rebalancing construction steel resources across regions.

[SMM Steel Morning Meeting Summary] Last week, rebar prices fluctuated rangebound, with the current nationwide average price at 3,087 yuan/mt, down 10 yuan/mt MoM. On the supply side, blast furnace steel mills are still in a profitable phase. In June, some steel mills adjusted their production structures, shifting towards increasing production of high-quality special steel and strip steel varieties, with expectations of further reductions in construction materials. Steel scrap prices have remained firm, exacerbating losses on production at EAF steel mills. This week, individual steel mills have halted operations, and several others have reduced their operating hours, resulting in operating rates significantly lower than the same period last year...

This week, the ferrous metals series first rose and then fell, with an overall downward trend. At the beginning of the week, the China-US talks sent optimistic signals, improving market sentiment and driving up the futures market. However, mid-week, the fundamental factors of steel turned weak, coupled with fading sentiment, causing the futures market to decline. As the weekend approached, the US announced that it would impose a tariff hike on steel home appliances starting from the 23rd, leading to a significant drop in the futures market, except for coking coal and coke. In the spot market, the futures market rose in the first half of the week, leading to a phased improvement in market transactions. However, most transactions were driven by rigid demand for low-priced purchases, and seasonal characteristics began to emerge...

[SMM Rebar Daily Review: Seasonal Demand in Off-Season, Contradictions in Industrial Sector Gradually Emerging] This week, rebar prices fluctuated rangebound, with the nationwide average price at 3,087 yuan/mt, down 10 yuan/mt MoM.

[SMM Survey: Decline in Both Rebar and Wire Rod Rolling Lines in Central China, Steel Mills Collectively Cut Production?] During the survey period (June 3 - June 9), the operating rate and capacity utilisation rate of rebar rolling lines in steel mills in Central China both declined; the capacity utilisation rate of wire rod rolling lines also declined.

The project of strip steel pickling, tempering, and hot galvanizing with aluminum-magnesium alloy at a steel company in Hebei province has been approved. The project mainly involves the construction of two pickling and tempering production lines, two hot galvanizing with aluminum-magnesium alloy production lines, and four semi-automatic packaging production lines. The annual output will be 1.6 million mt of pickled and tempered strip steel coils and 1.4 million mt of hot galvanized with aluminum-magnesium alloy commodity coils.

[SMM Flash News] A project involving strip steel pickling and tempering as well as hot galvanizing with aluminum and magnesium by a steel company in Hebei province has been approved. The project mainly involves the construction of two pickling and tempering production lines, two hot galvanizing with aluminum and magnesium production lines, and four semi-automatic packaging production lines. The annual output will be 1.6 million mt of pickled and tempered strip steel coils and 1.4 million mt of hot galvanized with aluminum and magnesium commodity coils.

As the end-of-quarter disturbances gradually subsided and the central bank's operations supported liquidity, the market's funding conditions recently showed a stable and slightly loose trend. Industry insiders indicated that the liquidity pressure after the quarter-end has significantly eased, and the price center of funds is expected to decline. Meanwhile, fiscal efforts will accelerate the pace of government bond issuance, and the supply pressure of government bonds in Q2 is gradually becoming apparent. It is widely expected in the industry that if the accelerated supply of government bonds pushes up funding rates, the central bank may use various monetary policy operations to hedge the pressure on funding conditions. Coupled with the fiscal injection effect in Q2, the funding conditions are expected to marginally loosen.

[Japan's Steel Exports Reached 2.488 Million mt in January 2025] According to data from the Japan Iron and Steel Federation, Japan exported 2.488 million mt of steel in January 2025, down 4.2% YoY. Among them, exports of ordinary steel were 1.785 million mt, up 0.1% YoY, marking the third consecutive month of YoY growth. Regarding major product exports, Japan's exports of hot-rolled wide strip steel in January 2025 were 947,000 mt (down 6.6% YoY), heavy plate 252,000 mt (up 26.1% YoY), galvanized steel sheet 161,000 mt (up 8.0% YoY), and cold-rolled wide strip steel 131,000 mt (down 0.3% YoY).

According to statistics from the China Construction Machinery Industry Association on major excavator manufacturers, 19,270 excavators were sold in February 2025, up 52.8% YoY. Among them, domestic sales reached 11,640 units, up 99.4% YoY, while exports totaled 7,630 units, up 12.7% YoY. From January to February 2025, a total of 31,782 excavators were sold, up 27.2% YoY. Among them, domestic sales amounted to 17,045 units, up 51.4% YoY, and exports reached 14,737 units, up 7.37% YoY.