As of November 16, rebar stocks continued to contract last week, falling by 3.85% from the previous week. Supply is expected to increase in the short term as this will encourage steel mills' desire for higher production amid improving profits. However, demand may weaken in a slow season due to weather conditions.
On the other hand, scheduled maintenance at some steel mills this week will reduce the likelihood of higher pig iron output. Moreover, ore stocks at ports and steel mills will remain low, which will provide a big boost to spot iron ore prices. However, iron ore prices may retreat due to regulatory risks.
As a result, investors will need to be wary of the risk of overproduction, which could increase the likelihood of inventory accumulation. Iron ore prices are expected to fluctuate during this week.