SHANGHAI, Jul 10 (SMM) – Scheduled output of rebar for July across 31 major long steel producers in China is expected to increase 0.9% from actual output in June, and stand at nearly 7 million mt, an SMM survey showed.
Production resumption at steel mills after environmental reviews accounted for the increase. Planned output of wire rods at these mills is likely to dip 0.04% from the realised output in June to 3.15 million mt in July.
The amount of rebar output for domestic sales is planned at 6.83 million mt in July, up 1.24% month on month as exports are scheduled to shrink 11% to 170,000 mt.
In east China, surveyed mills planned to produce 3.12 million mt of rebar this month, 3.78% higher than actual output in June. Wire rod production will also rise 0.12% to 1.52 million mt in July.
Production resumed at Binxi Steel, Shagang, Zhongtian Group, Nanjing Iron & Steel this month as environmental restriction lifted and maintenance ended. This accounted for the gains in scheduled output.
Shagang in Jiangsu province planned to resume full production for rebar this month, after its rolling lines completed maintenance at the end of June. Production at its blast furnace continues to be limited in July but this will have little impact on rebar production. The plant will raise the amount of rebar output for domestic sales, as it is scheduled to cut exports by 5,000 mt this month, to 50,000 mt.
At Yonggang in Jiangsu, an estimated 100,000 mt of rebar production will be affected as the plant's rolling lines undergo maintenance for 30 days. This followed after its heating furnace broke down on July 9. Yonggang is scheduled to produce 320,000 mt of rebar this month, down 5% from June, and to produce 280,000 mt of wire rods in July, up 4% from June.
Surveyed steel mills in north China planned to produce 1.2 million mt of rebar in July, up 2.3% from actual output last month. Their scheduled output of wire rods will grow 7% from June, to 784,000 mt.
Some 3,000 mt daily output of rebar will be affected at Chengde Iron & Steel, as the plant carried out maintenance on one of its rolling lines from July 5 to 16. Scheduled output of wire rods at Chengde rose to 90,000 mt in July, from 45,000 mt of actual output in June, as excess molten iron from cutbacks in rebar will be used to produce wire rods.
In north-east China, surveyed mills reported planned rebar output at 644,000 mt in July, lower from June by more than 4%. Production of wire rods is expected to gain 1.1% in July from June, to stand at 183,000 mt.
Cuts of 30% in scheduled rebar output at Fushun New Steel accounted for the above decline. Two blast furnaces at Fushun malfunctioned and were overhauled, this lowered the supply of molten iron. They are likely to resume operation in mid-July.
In the north-west, planned rebar output is set to decrease 1.9% to 1.09 million mt, and that of wire rod is likely to drop 12.1% to 421,000 mt in July. The expected declines come after scheduled rebar production at Xinjiang Bayi Iron & Steel fell 8%, and wire rod production lost 41%. Higher profits drove the plant to produce more hot-rolled coil, while cutting output of rebar, SMM learned.
Surveyed steelmakers in central and south China planned to produce 966,000 mt of rebar in July, down 3% on the month, and to produce 242,000 mt of wire rods, up 0.83% on the month.
Around 40,000 mt of rebar output will be affected at Guangdong Shaogang as one of its blast furnaces undergo repair for about three days this month. Motivated by higher margins, Hunan Valin Iron & Steel also planned to cut rebar output, and to raise hot-rolled coil output.