Market Sentiment Recovers, Central China Rebar and Wire Rod Supply Edges Up Slightly

Published: Sep 1, 2026 15:42

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During the survey period (August 25-August 31), the operating rate of rebar rolling lines in Central China remained flat, the capacity utilization rate edged up, and wire rod supply remained stable.

During the survey period (August 25-August 31), the operating rate of rebar rolling lines in the region remained flat, while the capacity utilization rate edged up. Specifically, production at some steel mills in Henan increased slightly. On one hand, driven by the recent price rally, mills showed improved willingness to produce construction steel; on the other hand, coil shipments were weak, and some hot metal was redirected back to rebar production. A steel mill in Hunan underwent brief maintenance in the previous period and resumed normal production this period, with its rebar rolling line capacity utilization rate edging up. In terms of mill inventories, they remained stable this period, mainly because inventories at some mills in Hunan increased due to production resumptions, while some mills in Henan saw improved shipments amid the price rally. The combined effect kept mill inventories stable. Rebar supply is expected to see growth potential next period, mainly as EAF steel mills in Henan see improved margins and plan to increase production.

During the survey period (August 25-August 31), blast furnace steel mills saw limited improvement in margins, with insufficient willingness to produce wire rod, 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, causing mill inventories to shift from rising to falling. Driven by the surge in spot prices, some EAF steel mills saw improved margins and plan to increase production, with wire rod supply expected to see growth next period.

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