[SMM Survey] Maintenance Increases, Operating Rate and Capacity Utilisation Rate of Rolling Lines in Central China Both Decline

Published: Dec 31, 2024 09:45 (GMT+8)

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[SMM Survey: Increased Maintenance Leads to Decline in Both Operating Rate and Capacity Utilisation Rate of Rolling Lines in Central China] During the survey period (December 23 to December 30), the operating rate and capacity utilisation rate of rebar and wire rod rolling lines in steel mills in the Central China region both decreased.

Central China Steel Mills Construction Material Production Line Operating Rate and Forecast
During the survey period (December 23-30), the operating rate and capacity utilisation rate of rebar and wire rod rolling lines in steel mills in Central China both declined.
Data Source: SMM
During the survey period (December 23-30), the operating rate and capacity utilisation rate of rebar rolling lines in steel mills in Central China both declined.
Specifically, in Hubei, one additional rolling line underwent maintenance due to environmental protection reasons, while in Henan, one rolling line was newly added for maintenance, and another rolling line resumed production. Overall, the operating rate decreased, leading to a reduction in rebar supply in the region. Regarding in-plant inventory, spot prices in the market fluctuated within a narrow range during the survey period, with weak winter stockpiling sentiment and some end-users purchasing as needed. With reduced supply, in-plant inventory also decreased slightly.
Rebar production in Central China is expected to increase slightly next week, mainly due to the resumption of one rolling line each in Hunan and Hubei that were under maintenance, while other operating rolling lines are expected to maintain normal production. Overall, the regional production is anticipated to see a slight increase next week.
Data Source: SMM
During the survey period (December 23-30), the operating rate and capacity utilisation rate of wire rod rolling lines in steel mills in Central China both declined.
Specifically, in Hubei, one additional rolling line underwent maintenance due to environmental protection reasons, while in Henan, blast furnace maintenance led to insufficient pig iron, resulting in one additional wire rod rolling line undergoing maintenance. Other operating rolling lines maintained stable production, and overall wire rod production slightly decreased this week. Regarding in-plant inventory, spot prices in the market fluctuated within a relatively small range during the survey period, and steel mills shipped at a normal pace. With reduced supply, in-plant inventory slightly decreased this week.
Wire rod production in Central China is expected to increase slightly in the next period, as the newly added maintenance in Hubei and Henan this week is planned to resume production next week. Overall, regional production is expected to increase slightly.
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