SHANGHAI, Nov 9 (SMM) – Scheduled output of rebar in November across 31 major producers of long steel is expected to fall 2% from actual output in October and stand at 7.66 million mt, an SMM survey showed.
Despite the upcoming winter curbs from November 15, planned output dipped as higher profits encouraged mills to maintain production of rebar at the expense of hot-rolled coil.
Scheduled output of wire rods at surveyed mills is likely to dip 5% from realised output in October, to 2.94 million mt in November.
Rebar output for domestic sales is planned at 7.46 million mt in November, down 1.61% month on month, and exports are also likely to fall by 3.6% to 80,000 mt.
As of November 8, profits for rebar averaged 987.3 yuan/mt, compared with hot-rolled coil’s profits of 391.9 yuan/mt, SMM calculated based on an average price of imported iron ore at $76.93/mt.