Today's rebar futures swung on a strong note amid brisk market sentiment. It closed at 3573 yuan/mt, an increase of 2.85% from the previous trading day. The transaction price at the spot market increased slightly. The overall transaction has improved, and the market trading activity has been slightly higher. On the cost side, today some steel companies in Hebei started their sixth round of coke prices cut. If this round of cut were implemented, the current profits of steel mills will improve.
On the supply side, according to SMM statistics, the amount of pig iron affected by blast furnace maintenance this week was 1.9454 million tons, a decrease of 116,900 tons from last week's maintenance. With the completion of blast furnace maintenance at some steel plants, pig iron production has rebounded slightly. However, overall, pig iron is still at a historically low level, and the overall resumption of production is relatively slow. On the demand side, affected by the rise in rebar futures, the market sentiment for purchasing goods has improved slightly, and futures transactions have increased. However, due to the fact that the new project operating rate is still at a low level, the overall demand increase is still relatively limited. Overall, the market's pessimism has been restored due to the rise in futures, but the problem of lower than expected demand still exists. Before the steel inventory is reduced, it is expected that the steel price increase is unlikely to maintain, and the market will move rangebound.
