Operating rates of BF and EAF steel mills diverged, with wire rod production expected to edge up next period

Published: Sep 8, 2026 10:48

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During the survey period (September 1-September 7), the operating rate of rebar rolling lines in Central China remained flat, the capacity utilization rate edged down, the wire rod operating rate held steady, and the capacity utilization rate edged up.

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. Specifically, some EAF steel mills in Henan saw improved production margins recently, leading to a slight increase in production. Meanwhile, some blast furnace steel mills in Hubei reduced loads due to mounting margin pressure. The combined effect pushed the rebar capacity utilization rate slightly lower. On the mill inventory side, inventories edged down during the period, mainly due to production cuts at Hubei steel mills. Rebar supply is expected to remain stable next period, with producers maintaining their current production pace.

During the survey period (September 1-September 7), the wire rod operating rate in Central China held steady, while the capacity utilization rate edged up. This was mainly driven by improved production margins at EAF steel mills in Hunan, which extended operating hours and boosted wire rod supply growth. On the mill inventory side, some Henan steel mills stepped up outbound shipments, driving mill inventory destocking. Wire rod supply is expected to see further growth potential next period, mainly as some Hubei steel mills have intermittent production resumption plans, which will lift both the operating rate and capacity utilization rate.

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