[SMM survey] Weekly survey of wire rod rolling lines in central China: market sentiment recovers, with slight growth in supply of rebar and wire rod in central China

Operating Rates and Forecasts for Building Material Production Lines at Steel Mills in Central China

During the survey period (August 25–August 31), rebar rolling line operating rates in Central China remained flat, capacity utilization rates edged up, and wire rod supply stayed stable.

Source: SMM

During the survey period (August 25–August 31), rebar rolling line operating rates in the region remained flat, while capacity utilization rates edged up.

Specifically, production at some steel mills in Henan increased slightly. On one hand, improved sentiment for building material production was driven by the recent price rally; on the other hand, coil shipments were weak, leading to some hot metal being redirected back to rebar. A steel mill in Hunan underwent brief maintenance in the previous period and resumed normal production this period, with rebar rolling line capacity utilization rates edging up. In terms of mill inventories, they remained stable this period, mainly because some inventories in Hunan increased due to production resumptions, while some mills in Henan saw better shipments amid rising prices. The combined effect kept mill inventories stable.

Rebar supply is expected to see growth next period, mainly as EAF mills in Henan see improved margins and plan to increase production.

Source: SMM

During the survey period (August 25–August 31), blast furnace steel mills saw limited margin improvement, and production enthusiasm for wire rod remained insufficient, keeping supply stable.

Specifically, on the mill inventory side, driven by the price rally, market sentiment clearly recovered, and speculative purchase demand from agents increased, turning mill inventories from an increase to a decline.

Driven by the rise in spot prices, some EAF steel mills saw improved margins and plan to increase production. Wire rod supply is expected to see some growth next period.

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