[SMM Survey] Operating Rate of Rolling Lines in Central China Remains Flat, Capacity Utilisation Rate Continues to Decline

Published: Jan 7, 2025 10:17
[SMM Survey: Operating Rates of Rolling Lines in Central China Remain Stable, Capacity Utilisation Rate Continues to Decline] During the survey period (December 30 to January 6), the operating rates of rebar and wire rod rolling lines in steel mills in the Central China region remained stable, while the capacity utilisation rate slightly declined.

Operating Rates and Forecasts of Construction Steel Production Lines in Central China Steel Mills

During the survey period (December 30 - January 6), the operating rates of rebar and wire rod rolling lines in Central China steel mills remained stable, while the capacity utilisation rate decreased slightly.

Data Source: SMM

During the survey period (December 30 - January 6), the operating rates of rebar rolling lines in Central China steel mills remained stable, while the capacity utilisation rate decreased slightly.

Specifically, in Hubei Province, one new rolling line underwent maintenance, and one previously maintained rolling line resumed production. The production of other operating rolling lines slightly decreased, resulting in stable overall operating rates and a slight decline in production. Regarding in-plant inventory, spot prices in the market fluctuated rangebound during the survey period. Apart from a few end-users rushing to meet deadlines, overall demand gradually weakened, leading to a slight decrease in steel mill inventory.

Rebar production in Central China is expected to increase slightly next week, mainly due to the resumption of one rolling line each in Hubei and Henan provinces, while other operating rolling lines will maintain their previous production pace. Overall production in the region is expected to increase next week.

Data Source: SMM

During the survey period (December 30 - January 6), the operating rates of wire rod rolling lines in Central China steel mills remained stable, while the capacity utilisation rate decreased.

Specifically, in Hubei Province, one new rolling line underwent maintenance, while one previously maintained rolling line resumed production. Other operating rolling lines maintained the production pace of the previous period, resulting in an overall decline in production. Regarding in-plant inventory, as January began, although market demand gradually weakened, the reduced supply from steel mills led to a continued slight decrease in in-plant inventory.
Wire rod production in Central China is expected to increase slightly in the next period, with one rolling line each in Hubei and Henan provinces planned to resume production. Overall production in the region is expected to increase slightly.

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Data Source Statement: Except for publicly available information, all other data are processed by SMM based on publicly available information, market communication, and relying on SMM‘s internal database model. They are for reference only and do not constitute decision-making recommendations.

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