[SMM survey] Rebar and wire rod output both increased, supply and demand conflict in central China continued to accumulate

During the survey period (June 25 - July 1), the operating rate and capacity utilization rate of rebar production lines in central China steel mills increased again this week; it is expected that in the next period, rebar production in central China steel mills may see an increase in rebar output and a decrease in wire rod output.

During the survey period (June 25 - July 1), the output and capacity utilization rate of rebar rolling lines in the central China both increased.

Specifically: the production pace in Hunan stabilized; in Hubei, some steel mills had rolling line rotations, leading to a decrease in output; however, in Henan, several steel mills resumed production in the past two weeks, with output continuously rising, driving the total output of rebar in central China to increase again this period. In terms of in-factory inventory, the impact of high temperatures and rainy season persisted, coupled with the low steel prices last week, overall procurement enthusiasm was low, and in-factory inventory continued to accumulate.

It is expected that rebar production in the central China will continue to rise next week, mainly because the rebar rolling lines in steel mills in Hubei have ended their rotation breaks and resumed normal production.

During the survey period (June 25 - July 1), wire rod production in the central China increased.

Specifically, wire rod production in Henan stabilized during this period, but there was a shortage of wire rod in Hunan and Hubei. Steel mills slightly increased their production load, leading to an overall increase in wire rod production. In terms of in-factory inventory, demand was generally weak during the off-season, but wire rod production remained at a low level, and inventory only grew slightly.

It is expected that wire rod production in central China will decrease next week, as steel mills in both Hunan and Hubei will reduce their production load.