[SMM survey] Rebar Production in Central China Declines, with Inventory Slightly Accumulating

Operating Rate and Forecast of Rebar Production Lines in Steel Mills in Central China

During the survey period (May 28 - June 3), the operating rate and capacity utilization rate of rebar production lines in Central China steel mills both declined; it is expected that the rebar production in Central China steel mills may rebound in the next period.

During the survey period (May 28 - June 3), the operating rate and capacity utilization rate of rebar rolling lines in the Central China both declined.

Some steel mills in Henan conducted rolling line maintenance, and a steel mill in Hubei slightly reduced its production load, leading to a decrease in rolling line output. The production of rebar lines in Hunan remained largely unchanged. In terms of plant inventory, there was a divergence this week. The shipment of resources from Hubei plants was moderate, and the inventory continued to drop, but the shipments in Henan on weekends were poor, leading to an accumulation of inventory.

It is expected that the rebar output in the Central China may rebound next week, as the steel mills undergoing maintenance this period will resume production in the next period, driving an increase in the operating rate and output.

During the survey period (May 28 - June 3), the operating rate and capacity utilization rate of wire rod in the Central China region slightly declined. Specifically, Henan and Hubei maintained normal production this period, while a steel mill in Hunan added new wire rod maintenance, leading to a slight decrease in weekly output. However, recent overall transactions were poor, resulting in a slight accumulation of wire rod inventory in Central China.

It is expected that the wire rod output in the Central China region will continue to decline, mainly due to the impact of maintenance at Hunan steel mills.