[SMM Survey] Central China Wire Rod Weekly Survey: BF and EAF Steel Mill Operating Rates Diverge, Wire Rod Output Expected to Edge Up Next Week

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

During the survey period (September 1 - September 7), the operating rate of rebar rolling lines in the region remained flat, while the capacity utilization rate edged down slightly.

Source: SMM

During the survey period (September 1 - September 7), the operating rate of rebar rolling lines in the region remained flat, while the capacity utilization rate edged down slightly.

Specifically, a few electric furnace producers in Henan saw improved production margins recently, leading to a slight increase in production; meanwhile, some blast furnace steel mills in Hubei chose to reduce loads due to mounting margin pressure. The combined effect pushed the rebar capacity utilization rate down slightly. On the mill inventory side, inventories edged down during the period, mainly due to production cuts at steel mills in Hubei.

Rebar supply is expected to remain stable next period, with producers maintaining their current production pace.

Source: SMM

During the survey period (September 1 - September 7), the operating rate of wire rod lines in Central China remained stable, while the capacity utilization rate edged up slightly.

This was mainly driven by improved production margins at electric furnace producers in Hunan, which raised operating hours and boosted wire rod supply growth. On the mill inventory side, some steel mills in Henan stepped up outbound shipments, driving inventory drawdown.

Wire rod supply is expected to see further growth potential next period, mainly as some steel mills in Hubei have intermittent production resumption plans, which will lift both the operating rate and capacity utilization rate.

Data Notes:

Since October 2025, we have launched the "National Building Material Steel Mill Production by Region" dataset, which includes "Building Material Production in Central China." We recommend using "Building Material Production in Central China" as a reference going forward.After careful evaluation, SMM has decided to officially suspend updates to the "Operating Rate of Rolling Lines at Steel Mills in Central China" data following the final release on September 8, 2026.Going forward, we will continue to optimize the "National Building Material Steel Mill Production by Region" data products to provide clients with higher-quality services. Historical data for the "Operating Rate of Rolling Lines at Steel Mills in Central China" will remain available on our platform.

All data other than publicly available information is derived from public information, market communication, and SMM's internal database models, and is processed by SMM. It is for reference only and does not constitute investment advice.