The central China market took CNY holidays one after another, and the production of steel may continue to decline next week.

During the survey period (January 30-February 5), the rebar rolling line operating rate and output in central China declined. Rebar production in central China is expected to continue to decline.

Specifically: in terms of EF, many electric furnace steel plants in Henan and Hubei stopped production during the week, resulting in a decrease in output and operating rates; in terms of BF, the preliminary annual inspections of steel plants in Henan, Hubei and Hunan basically ended. The production pace remained stable. In terms of factory warehouses, the market took CNY holiday one after another. As of the end of this period, more than 90% of traders have entered holiday, market transactions stagnated, and factory inventories continued to grow.

It is expected that rebar production in central China will continue to decline next week, mainly due to the complete shutdown of EF in the next period, and rebar supply will continue to decrease.

During the survey period (January 30-February 5), the wire rods operating rate and output in central China declined. Specifically: many EF steel plants in Henan and Hubei stopped production at the end of January, resulting in a decrease in overall output and operating rates; in terms of BF, after preliminary annual inspections, the production of major steel plants in Henan, Hubei, and Hunan remained steady. In terms of factory inventory, the market took CNY holidays, and factory inventories continued to grow.

It is expected that the output of wire rods in central China will drop again next week, mainly due to the complete shutdown of electric furnace steel plants in the region, resulting in a reduction in the supply of coiled rebar.