[SMM Analysis] Steel mill profit recovery, operation resuming became the main theme of Central China Rolling Line

During the survey period (April 9-April 15), the operating rate and capacity utilization rate of the rebar production lines of steel mills in central China rebounded; A certain increase of the rebar output in central China was to be expected in the next period.

Operating rate and forecast of rebar production lines in central China steel mills

During the survey period (April 9-April 15), the operating rate and capacity utilization rate of the rebar production lines of steel mills in central China rebounded; A certain increase of the rebar output in central China was to be expected in the next period.

During the survey period (April 9th - April 15th), the rebar production in central China inched higher.

In this cycle, climbing prices of raw materials pushed up steel prices, leading to the recovery of steel mill profits. Steel mills in Hubei and Henan completed rolling line maintenance, and gradually resumed their production, bringing an increase in rolling line operating rates and output in central China. The production of steel mills in Hunan was relatively stable. In terms of factory inventory, steel prices rose last week. Market transactions were active, and both speculative and rigid demand purchases were large, which led to a further decline in factory inventory.

Production of rebar in central China may increase again. Some steel mills in Hubei resumed production at the end of this period, and the changes in production would mainly be reflected in the next period.

During the survey period (April 9-April 15), the operating rate of wire rod remained stable, but production capacity utilization rate rose with an increase in the output.

The production of Hubei steel mills remained stable in this period. The rolling lines in Hunan were under maintenance in the previous period and had not resumed production in this period. However, steel mills in Henan resumed production at the end of the previous period. The increase in output had mainly reflected in this period, resulting in an increase in total output. In terms of factory inventories, rebar transaction increased, bringing a smooth destocking.

The production rate of steel mills in the central China may rose slightly this week, due to the production resumption of some steel mills in Hunan who completed maintenance.