[SMM survey] Steel mills continue to incur losses, with both rebar and wire rod production in central China decreasing

Operating rate and forecast of rebar production lines in central China steel mills

During the survey period (July 30 - August 5), the rebar and wire rod production in central China steel mills slightly decreased. It is expected that the rebar production in central China steel mills may rebound in the next period.

During the survey period (July 30 - August 5), the rebar production in central China steel mills slightly decreased.

Specifically, in this period, some steel mills in Hubei and Henan regions completed temporary maintenance and resumed production, leading to a significant increase in the operating rate. However, due to the short resumption time, the production increase was not significant. Additionally, new rolling line maintenance in Hunan led to a slight decrease in production. Regarding in-factory inventory, demand did not improve this week, but the supply side continued to decrease, resulting in a slight overall inventory decline.

Rebar production in the central China region is expected to increase next week, mainly due to the production increment from the resumption.

During the survey period (July 30 - August 5), the operating rate and production of wire rod rolling lines in the central China region both declined.

Specifically, steel mills in Hunan maintained normal production of coiled rebar, but steel mills in Henan and Hubei reduced their wire rod production lines. Some steel mills planned to completely halt their rolling lines, awaiting further market trends before resuming production, leading to a significant decline in wire rod production this period.

Wire rod production in the central China is expected to slightly rebound next week, mainly due to the resumption of wire rod rolling lines in Hubei, with production reflected further next week.