[SMM survey] Inventory grew in some steel mills and rebar production slightly declined in central China

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

During the survey period (June 11 - June 17), the capacity utilization rate of rebar production lines in Central China steel mills declined; it is expected that the rebar production in Central China steel mills will rebound in the next period.

During the survey period (June 11 - June 17), the capacity utilization rate of rebar rolling lines in the Central China region declined.

Specifically, in Henan, some steel mills adjusted their rolling line production plans, shifting pig iron to round steel, resulting in a decrease in rebar production this period. The Hubei and Hunan regions maintained their production pace. Regarding plant inventory, prices in Hubei have been relatively low recently, market demand is not ideal, and inventory has slightly accumulated, but Henan still saw inventory reduction.

It is expected that rebar production in the Central China will continue to rebound next week, mainly due to production resumption plans at steel mills in Henan. During the survey period (June 11 - June 17), the operating rate of wire rod in Central China remained unchanged, but production increased.

Specifically, the increase in wire rod production brought by resumption in Hunan became evident in this period. The production pace of wire rod in Hubei and Henan stabilized, but there was a slight accumulation in the wire rod factory inventory in Henan.

It is expected that wire rod production in the Central China will see a slight increase next week, mainly due to tight wire rod resources in Hubei, leading steel mills to slightly increase their production load.