SHANGHAI, Aug 8 (SMM) – Scheduled output of rebar for August across 31 major long steel producers in China is expected to increase nearly 5.5% from actual output in July to stand at over 7.52 million mt, an SMM survey showed.
Despite lingered environmental impact, planned production increases given current high profits of rebar across steel mills. Scheduled output of wire rods at these mills is also likely to rise 0.86% from the realised output in July to 3.17 million mt in August.
The amount of rebar output for domestic sales is planned at 7.34 million mt in August, up 5.5% month on month, and exports are scheduled to increase 5.9% to 180,000 mt.
Surveyed mills planned to produce 3.24 million mt of rebar this month, 3.9% higher than actual output in July. Wire rod production will rise 3.2% to 1.57 million mt in August.
Production resumed at Yonggang in Jiangsu province and Maanshan Steel in Anhui province as environmental restrictions were lifted and maintenance ended. This accounted for the gains in scheduled output.
A rebar rolling line at Yonggang resumed operation on August 1, from maintenance that started on July 9. This led to a 22% increase in the plant’s scheduled rebar production this month, at 390,000 mt.
At Maanshan Iron & Steel, more molten iron is planned to be used in producing rebar as the steelmaker will conduct maintenance to its H-beam production line from August 15. Maintenance is scheduled for 28 days, affecting an estimated 40,000 mt of H-beam output. The plant planned to produce 171,000 mt of rebar in August, up 49% from July.
Surveyed mills in the north planned to produce 1.3 million mt of rebar this month, up 8.2% from actual output last month. Their scheduled output of wire rods will dip 5.5% from July, to 694,000 mt.
Production resumed after Chengde Iron & Steel carried out maintenance on one of its rebar rolling lines from July 5 to 16. Scheduled output of rebar at the plant is set to rise 20% from last month, to 240,000 mt in August.
With higher profit margins, Tangshan Iron & Steel planned to produce more rebar in August, at 58,000 mt, instead of hot-rolled coil. The plant did not produce any rebar last month.
Surveyed mills in the region reported scheduled rebar output at 724,000 mt in August, up 18% from July. Production of wire rods is expected to decrease 1.3% in August from July, to stand at 181,000 mt.
At Fushun New Steel, one of the two blast furnaces that went into maintenance in July has resumed operations, while the other will recover in mid-August. This brings the plant’s scheduled rebar output up 43% this month, to 200,000 mt.
Molten iron supply will also increase at Xilin Iron & Steel this month, as one of its 1,260m³ blast furnaces resumed from maintenance on July 19. The mill planned to produce 240,000 mt of rebar in August, up 20% from July.
Planned output of rebar in this part of the country is set to rise 0.28% to 1.07 million mt, and that of wire rod is likely to gain 5% to 445,000 mt in August. Higher profits drove Jiuquan Iron & Steel to produce more rebar and wire rods at the expense of hot-rolled coil. Its planned rebar production this month may rise some 3,000 mt to 206,000 mt, and that of wire rods up 28% to 95,000 mt.
Central, south China
Surveyed steelmakers in central and south China planned to produce 1.19 million mt of rebar in August, up 5.1% on the month, and 282,000 mt of wire rods, flat on the month.
Hight output at Guangdong Shaogang and Hunan Valin Iron & Steel, due to more molten iron available after blast furnance maintenance, accounts for the increases.