SHANGHAI, Oct 11 (SMM) – Scheduled output of rebar for October across 31 major producers of long steel is expected to fall 0.21% from actual output in September to some 7.63 million mt, an SMM survey showed.
Despite the upcoming winter curbs, the decline in planned output was moderate as details for the cut have not been released across most regions.
Scheduled output of wire rods at surveyed mills is likely to increase 3.87% from realised output in September, to 3.08 million mt in October.
Rebar output for domestic sales is planned at 7.54 million mt in October, down 0.11% month on month, and exports are likely to fall by 8.8% to 83,000 mt.
Surveyed mills planned to produce 3.11 million mt of rebar this month, 0.82% higher than actual output in September. Wire rod production will also rise 3.22% to 1.54 million mt.
Production of rebar will increase 4% to 424,100 mt at Shagang in Jiangsu province as a rebar rolling line ends maintenance. But short supplies of billet materials will keep Shangang from achieving full operation.
Higher profits drove Yonggang in Jiangsu to increase scheduled rebar production by 17% to 410,000 mt. The company also raised planned output for wire rods by 11% to 300,000 mt.
At Zenith Steel in Jiangsu, continued environmental restrictions kept scheduled rebar output flat from September, at 220,000 mt. Maanshan Iron & Steel lowered its planned rebar output by 20% to 132,000 mt, due to an 11-day maintenance on its rolling line this month. Maintenance is likely to affect rebar daily production by 4,000 mt.
Surveyed mills in the north planned to produce 1.27 million mt of rebar this month, down 1.86% from actual output last month. Their scheduled output of wire rods will rise 2.02% from September, to 657,000 mt.
Most steel plants in Handan city made little changes in its scheduled production from September as their environmental cutbacks for non-heating season continue. Winter cutbacks have not been imposed as Tangshan remain under environmental rating processes and this kept mills maintaining their operating rate through October.
Xuanhua Iron & Steel in Hebei province planned to cut rebar output by 15% to 236,000 mt this month, as it will put its rolling line into maintenance of 15 days from October 15. Tangsteel planned to increase rebar production by 25% to 90,000 mt, at the expense of hot-rolled coil, after its blast furnaces resumed operation from overhaul works in September.
Surveyed mills reported scheduled rebar output at 769,000 mt in October, down 6.47% from September. Production of wire rods is expected to rise 7.26% to stand at 159,000 mt.
Tonghua Iron & Steel lowered planned rebar output by 44%, to 68,500 mt this month, in light of a 15-day maintenance on its rolling line. Xilin Iron & Steel scheduled raising rebar production by 13% to 270,000 mt, as maintenance on its wire rods rolling lines transferred molten iron to rebar production.
Planned output of rebar is set to fall 1.34% to 1.03 million mt, and that of wire rod will increase 7.04% to 380,000 mt.
Profits drove Jiuquan Iron & Steel to produce more wire rods instead of rebar. Its planned wire rod production this month may rise some 37% to 130,000 mt, and that of rebar may fall 7% to 192,000 mt. Shanxi Iron & Steel and Xinjiang Bayi Iron & Steel will maintain full operation this month.
Surveyed steelmakers planned to produce 1.46 million mt of rebar in October, up 2.08% on the month, and 336,000 mt of wire rods, up 5.49% on the month.
Production resumption after maintenance will grow rebar output at Echeng Steel in Wuhan by 40% this month, to 142,700 mt. Kunming Iron & Steel lowered its planned output of rebar by 9% to 420,000 mt, as the company will produce more steel extrusion and strip.