Steel prices moved upward as steel mills in central China continued to resume production [SMM survey]

Published: Apr 24, 2024 14:19
Source: SMM
During the survey period (April 16-April 22), the output of rebar at steel mills in central China continued to rebound in the week, and the speed of destocking slowed down; it is expected that the output of wire rod at steel mills in central China will still increase in the next period.

During the survey period (April 16-April 22), the output of rebar at steel mills in central China continued to rebound in the week, and the speed of destocking slowed down; it is expected that the output of wire rod at steel mills in central China will still increase in the next period.
During the survey period (March 16-March 22), rebar capacity utilisation rate in central China continued to rise. Production of steel mills in Hubei that restarted returned to normal in the week, with more production days than last week and a significant increase in output; electric furnace plants in Hubei and Henan increased operating hours due to improved profits, resulting in a small increase in daily output; in addition, some steel mills in three central China provinces met their early billet orders, and molten iron flowed back to building materials, resulting in a large overall increase in output. In terms of inventory on hand, the recent downstream purchasing was normal, and as the Labour Day holiday approaches, some agents prepared inventory in advance, causing inventory on hand to continue to decline.
It is expected that the production of rebar in central China may remain stable next week, as most steel mills have been operating normally.
During the survey period (April 16-April 22), the operating rate and capacity utilization rate of wire rods in central China increased. Steel mills in Hunan and Henan resumed wire rod rolling line in this period, and overall output continued to increase; secondly, as the coil benefits of some electric furnace steel mills are good, the operating hours have been increased, while the production of coiled rebar increased.
In terms of inventory on hand, the production of coiled rebar was small and the inventory continued to drop. Recently, the production of wire rod increased and the destocking slowed down slightly.
It is expected that the wire rod output in central China will continue to increase next week, mainly as the steel mills that have resumed production in Hunan will have more production days in the next period than in the current period.

Data Source Statement: Except for publicly available information, all other data are processed by SMM based on publicly available information, market communication, and relying on SMM's internal database model. They are for reference only and do not constitute decision-making recommendations.

For any inquiries or for more information, please contact: lemonzhao@smm.cn
For more information on how to access our research reports, please contact:service.en@smm.cn
Related News
[SMM Hot-Rolled Coil Daily Transaction] Spot Transactions Edge Up
13 hours ago
[SMM Hot-Rolled Coil Daily Transaction] Spot Transactions Edge Up
Read More
[SMM Hot-Rolled Coil Daily Transaction] Spot Transactions Edge Up
[SMM Hot-Rolled Coil Daily Transaction] Spot Transactions Edge Up
[SMM Hot-Rolled Coil Daily Transaction] On August 5, the combined daily trading volume of hot-rolled coil from sample enterprises in SMM’s four cities (Shanghai, Lecong, Tianjin, Ningbo) stood at 11,210 mt, up 990 mt day-on-day (+10.0%), down 13.97% YoY (solar calendar) and down 2.86% YoY (lunar calendar).
13 hours ago
MMi Daily Iron Ore Report (August 5)
14 hours ago
MMi Daily Iron Ore Report (August 5)
Read More
MMi Daily Iron Ore Report (August 5)
MMi Daily Iron Ore Report (August 5)
Today, the DCE iron ore futures trended higher today. DCE’s most-traded I2609 contract closed at 706 yuan/mt, up 0.93% from the previous trading session. Spot prices at Qingdao Port rose 3–8 yuan/mt from the prior trading day. Traders quoted actively, while steel mills purchased as needed, leaving overall spot trading moderate.
14 hours ago
[Thai Nguyen promotes domestic steel use, 14 investors sign agreements for 168,000 mt]
14 hours ago
[Thai Nguyen promotes domestic steel use, 14 investors sign agreements for 168,000 mt]
Read More
[Thai Nguyen promotes domestic steel use, 14 investors sign agreements for 168,000 mt]
[Thai Nguyen promotes domestic steel use, 14 investors sign agreements for 168,000 mt]
Thai Nguyen authorities have called on businesses and investors to prioritize domestically produced steel when products meet requirements on quality, delivery time and cost. On July 31, Thai Nguyen Iron and Steel Joint Stock Company signed cooperation agreements with 14 businesses and investors, covering an expected 168,000 mt of steel consumption for projects and construction works in the province. The company committed to competitive pricing, flexible cooperation and enhanced technical and after-sales support. The move is expected to expand market demand for domestic steel, strengthen links between steelmakers and construction companies, and support production growth and the local economy.
14 hours ago