[SMM Survey] Rebar production in central China continued to increase, and inventory at factory shifted from decline to accumulation

During the survey period (May 21 - May 27), the operating rates of rebar production lines in central China steel mills rebounded this week, with a significant increase in factory inventory. It is expected that the wire rod production in central China steel mills will continue to increase in the next period. Both the operating rate and capacity utilization rate of rebar rolling lines in the central China increased.

Specifically, in Hubei, some steel mills resumed production after maintenance, leading to a slight increase in output. Additionally, some steel mills saw good rebar sales and were operating at full capacity. In Hunan and Henan regions, there was little change in the production of rebar production lines. Regarding factory inventory, there was a significant increase this week, mainly due to a sluggish market atmosphere since last weekend, which slowed down the transfer speed of factory inventory, resulting in an accumulation.

It is expected that rebar production in the central China will remain stable next week. Currently, steel mills are making marginal profits from rebar production and are generally operating normally.

During the survey period (May 21 - May 27), the operating rate of wire rod in the central China increased, but the capacity utilization rate slightly decreased.

Specifically, a steel mill in Hunan resumed wire rod production last Thursday after previous maintenance, but the number of operating days this period was fewer than the previous period, resulting in a slight decrease in weekly output. In the Hubei region, some steel mills saw poor coiled rebar sales, leading to a slight reduction in coiled rebar production. The Hunan region mainly maintained normal production.

It is expected that the wire rod output in the central China may increase next week, primarily due to the normal number of operating days in Hunan.