Operating Rate and Forecast of Building Materials Production Lines in Central China Steel Mills

Operating Rate and Forecast of Building Materials Production Lines in Central China Steel Mills
During the survey period (January 27–February 2), the operating rate of rebar rolling lines in steel mills in Central China remained stable, while the capacity utilization rate declined slightly; both the operating rate and capacity utilization rate of wire rod rolling lines remained steady.

During the survey period (January 27–February 2), the operating rate of rebar rolling lines in Central China remained stable, while the capacity utilization rate decreased slightly. Specifically, blast furnace production resumption plans at some steel mills in Hubei were delayed, keeping the operating rate temporarily steady. Meanwhile, the number of operating days at individual steel mills in Henan decreased compared to the previous period, leading to a decline in the capacity utilization rate and a slight drop in production. In terms of mill inventory, regional stock performance varied this week: winter stockpiling resource shipments increased at some steel mills in Hunan, shifting inventory pressure to social inventory and resulting in a slight reduction in mill inventory. However, poor shipments in Henan led to a noticeable increase in mill inventory. Overall, mill inventory in Central China edged up slightly. Rebar production in Central China is expected to show divergent trends in the next period: individual steel mills in Hubei have blast furnace production resumption plans, and rebar rolling lines may resume simultaneously; meanwhile, some electric furnace mills in Henan plan to shut down one rebar rolling line due to tight steel scrap supply. Overall, rebar production is projected to continue declining.

During the survey period (January 27–February 2), most steel mills in Central China maintained their current production pace, with wire rod production remaining relatively stable. In terms of mill inventory, some steel mills in the central part of the region increased shipments of winter stockpiling resources during the survey period, shifting inventory pressure to social inventory and resulting in a slight decrease in overall regional mill inventory. Wire rod production in Central China is expected to shift from stable to increasing in the next period, though operating rates will vary across the region. Specifically, individual steel mills in Hubei have blast furnace production resumption plans and are expected to simultaneously restart one wire rod rolling line; meanwhile, some electric furnace mills in Henan plan to begin annual maintenance in early February, with rolling lines shutting down accordingly. Overall, the operating rate of wire rod rolling lines is expected to remain stable, while the capacity utilization rate will rise slightly.