[SMM Survey] Divergent Trends: Operating Rate of Rolling Lines in Central China Drops for Rebar but Rises for Coils

Operating Rates and Forecasts of Construction Steel Production Lines in Central China Steel Mills

During the survey period (March 4 to March 10), the operating rate of rebar rolling lines in Central China steel mills decreased, while the capacity utilisation rate increased; both the operating rate and capacity utilisation rate of wire rod rolling lines increased.

Data Source: SMM

During the survey period (March 4 to March 10), the operating rate of rebar rolling lines in Central China steel mills decreased, while the capacity utilisation rate increased.

Specifically, one new rolling line in Hubei underwent temporary maintenance this period, while the number of operating rolling lines in Hunan and Henan remained unchanged. The operating hours of certain steel mills increased, leading to a rise in capacity utilisation rate, which in turn boosted regional rebar supply. In terms of in-plant inventory, the direct supply from regional steel mills was moderate, resulting in a slight decline in overall in-plant inventory.

Rebar production in Central China is expected to shift from an increase to a decrease next week, primarily due to temporary maintenance of rebar rolling lines at certain steel mills in Hubei, causing a decline in capacity utilisation rate.

Data Source: SMM

During the survey period (March 4 to March 10), both the operating rate and capacity utilisation rate of wire rod rolling lines in Central China steel mills increased.

Specifically, rolling lines in Henan maintained normal production this period, while certain steel mills in Hubei and Hunan adjusted their production plans, with two rolling lines resuming production, driving an increase in regional wire rod supply. Regarding in-plant inventory, steel mills maintained normal shipments, and wire rod in-plant inventory continued its downward trend this period.

Wire rod production in Central China is expected to continue increasing in the next period, mainly due to the resumption of rolling lines at certain steel mills in Hubei and Hunan, contributing to additional output. However, the intermittent operation of wire rod rolling lines at steel mills in Hubei is expected to lead to a decline in the operating rate of regional rolling lines next week.

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