[SMM Survey] Central China Rolling Line Weekly Survey: Building Materials Profit Loss, Next Week's Performance to Diverge

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

During the survey period (August 18-24), the rebar rolling line operating rate in the region remained flat, while the capacity utilization rate edged down.

Data source: SMM

During the survey period (August 18-24), the rebar rolling line operating rate in the region remained flat, while the capacity utilization rate edged down.

Specifically, in Hunan, some steel mills saw a slight decline in production due to equipment failure maintenance; while in Henan, some steel mills diverted part of their hot metal to HRC production lines, causing the rebar capacity utilization rate to edge down. As a result, supply decreased slightly this period. In terms of mill inventory, this period's inventory turned from an increase to a decrease, mainly due to active market trading under rising prices, which drove inventory destocking.

It is expected that next period's rebar supply may see growth, mainly because Hunan steel mills' rolling line maintenance resumes production, with output returning to normal levels.

Data source: SMM

During the survey period (August 18-24), the operating rate and capacity utilization rate for wire rod in the Central China region remained stable.

During the survey period, steel mill profitability did not see significant improvement, and enthusiasm for producing wire rod was low. They temporarily maintained the previous production pace, and overall supply was stable. In terms of mill inventory, some regions were affected by rainfall, leading to a slowdown in end-user purchasing, resulting in a slight accumulation of inventory.

Against the backdrop of slow release of building material demand, it is expected that steel mills' wire rod production will remain stable next period.

All data other than public information are processed by SMM based on public information, market communication, and SMM's internal database models, and are for reference only, not constituting decision-making advice.