SHANGHAI, Nov 7 (SMM) – Maintenance across steel mills in China is likely to cut production of construction steel rebar by 1.07 million mt in November, 541,100 mt higher than the affected volume in October, according to SMM calculations based on publicly available information.
The overhaul mostly occurred in the south-west, north, and north-west China.
Electric arc furnace (EAF) steelmakers in the south-western region conducted maintenance as greater steel arrivals from the north weighed on local steel prices and squeezed margins at steelmakers.
Continued shortage of steel scrap and power network reconstruction also triggered maintenance in the south-west.
Overhaul in north China concentrated in Xinjiang and Inner Mongolia, where colder weather pushed steel mills into annual maintenance.