【SMM Steel】High rebar inventories burden southern Taiwan steel mills

Published: Jun 22, 2026 17:16

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【SMM Steel】Over a week of continuous rain and excess production have created massive rebar inventories among mills in southern Taiwan. Factories maximized rolling operations to achieve economies of scale and reduce per-unit costs, ignoring declining downstream demand and slower construction activity caused by the June monsoon. Distributors and processing plants face similar inventory backups. In response to the widening imbalance between output and shipments, mills are scaling back rolling operations from full capacity to one or two daily shifts. Market rumors suggest producers may need to offer shipping incentives by month-end to clear the heavy surplus across the supply chain.

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