Steel Rebar Stabilizes as Asian Markets Pause for Labor Day Holiday

image-alt-text

Inventory Drawdown

Domestic steel inventories have drawn down steadily this month, indicating healthy seasonal consumption. Mills are optimistic that new infrastructure stimulus will be announced shortly after the holiday break.

Cost-Push Floor

Despite the trading pause, high electricity and coking coal prices are maintaining a firm cost floor. Analysts expect mills to maintain high offer prices when the market reopens on May 6.